Kalbe (KLBF) Plans Rp500 Billion Share Buyback Starting Today
PT Kalbe Farma Tbk (KLBF) plans to conduct a share buyback with a maximum value of up to Rp500 billion. The buyback will be carried out over a three-month period starting today, 16 September 2026, until 16 December 2026.
According to information disclosure from the Indonesia Stock Exchange (BEI), the period may be ended earlier by the company, while still adhering to applicable laws and regulations.
Kalbe Farma estimates that the costs arising from the execution of the buyback, including brokerage fees and other related expenses, will be a maximum of 0.1% of the total share repurchase value. Assuming the buyback reaches the maximum limit of Rp500 billion, these costs would mathematically equate to approximately Rp500 million.
Management revealed that the buyback funds will be sourced from the company’s internal funds. The use of internal funds for the buyback will impact the company’s interest income.
Kalbe Farma estimates that if the entire share repurchase plan is implemented, there will be a decrease in interest income of approximately Rp8.4 billion after the buyback period ends.
Nevertheless, Kalbe Farma’s management assesses that this decrease in interest income will not have a material impact on the company. This implies that using a portion of internal funds to repurchase shares is still considered manageable within the company’s financial structure.
Interestingly, the company expects that the full execution of the buyback will actually have a positive impact on earnings per share (EPS). Taking into account the decrease in interest income and the reduction in the number of outstanding shares due to the repurchase, Kalbe Farma estimates that the pro forma EPS after the entire buyback is completed will reach Rp81.44 per share.
This figure is higher than the earnings per share recorded by the company for the fiscal year ending 31 December 2025, which was Rp80.51 per share. Consequently, there is an increase of approximately Rp0.93 per share, or about 1.15% compared to the previous EPS.
It is hoped that this corporate action will provide confidence to investors regarding the fundamental value of the company’s shares. Furthermore, the share buyback is seen as providing flexibility for the company in managing capital for the long term.
The repurchased shares may later become treasury shares that can be transferred in the future, while still considering the optimal value for increasing shareholder value. Through this mechanism, the company maintains flexibility in determining the use of the repurchased shares in accordance with prevailing conditions and regulations.