Amid Capital Market Volatility, BTN Examines Share Buyback Option
Jakarta (ANTARA) – PT Bank Tabungan Negara (Persero) Tbk (BTN) is assessing a share buyback as one possible corporate action amid developments in the domestic capital market. The review takes into account market conditions, the company’s strategic needs and efforts to create sustainable added value for shareholders.
BTN President Director Nixon L.P. Napitupulu said share-price movements amid market volatility needed to be viewed comprehensively, taking into account the company’s business fundamentals, growth prospects and ongoing transformation.
“We are continuing to monitor developments in the capital market and the various dynamics currently unfolding. As a publicly listed company, BTN regularly evaluates strategic options that could support the company’s long-term interests, including the possibility of a share buyback,” Nixon said.
He explained that the review considers several factors, including the company’s financial condition, capital adequacy, funding requirements for business expansion and applicable regulatory provisions.
“A buyback is one of the options we are assessing, including the potential use of repurchased shares for particular purposes in line with the company’s needs. Any decision will, of course, be made in a measured manner, taking into account the financial position, capital adequacy and the interests of all shareholders,” Nixon said.
A share buyback would not be new for BTN. In 2020, amid market pressures caused by the COVID-19 pandemic, the company set aside Rp275 billion for a planned buyback through the secondary market. That move serves as one reference point as BTN assesses corporate-action alternatives in light of market conditions and the company’s needs.
Nixon added that amid capital market volatility, BTN remained focused on strengthening its business fundamentals, improving performance and achieving healthy, sustainable growth.
The company is also continuing to pursue business growth opportunities, particularly in housing finance, which it says has significant potential. This is in line with its support for the Three Million Homes Programme and BTN’s transformation towards becoming “beyond mortgage”.
“Our main focus remains strengthening our fundamentals and achieving quality business growth. We see substantial growth opportunities in the national housing sector, and BTN will continue to strengthen its business capabilities and services to make the most of them,” Nixon said.
The company will provide further information to the public if it makes a decision on the corporate action, in accordance with applicable disclosure requirements and regulations.