BTN Explores Buyback Amid Shares Deemed 'Undervalued'

PT Bank Tabungan Negara (Persero) Tbk (stock code: BBTN) is reviewing a share buyback plan because its stock price is considered undervalued, with the results to be allocated for an employee share ownership programme. BTN President Director Nixon LP Napitupulu stated that this method is being considered given that the public share portion in BBTN is currently at the minimum regulatory limit. “Currently, BBTN’s share price is quite undervalued, so a possibility we can examine is purchasing shares for employee programme needs such as bonuses or stock options,” Nixon said in a statement received in Jakarta on Tuesday. Nixon noted that the buyback plan has not yet been included in the Bank’s Business Plan (RBB). According to him, the company will conduct further studies to incorporate the plan into a revision of the RBB. Previously, Danantara Chief Operating Officer Dony Oskaria assessed that a buyback is a normal corporate action, especially when the share price is deemed not to reflect the company’s fundamentals. “A buyback is actually a normal process. If we see our shares are too low, it can certainly be an option. Rather than investing elsewhere, it is better to invest in our own company’s shares if the fundamentals are indeed strong,” Dony said. According to Dony, a number of state-owned enterprises have solid business fundamentals, including the banking, mining, infrastructure, and other business development sectors. Therefore, companies with good fundamentals have the potential to continue creating value for shareholders. BTN itself is currently strengthening its business fundamentals through organic and inorganic growth strategies.