Lippo Karawaci (LPKR) Plans Rp250 Billion Share Buyback, Here's the Purpose
Jakarta, CNBC Indonesia - Property issuer PT Lippo Karawaci Tbk (LPKR) has commented on its plan to repurchase shares worth Rp250 billion. Management states that the company’s consideration for this buyback action is due to the intrinsic value and long-term prospects of the company, which are not fully reflected in the current market price.
“The company is considering the implementation of the buyback as part of a prudent and measured value management strategy, taking into account market conditions and the company’s fundamental performance,” management wrote in a disclosure to the Indonesia Stock Exchange (BEI) on Thursday (16/4/2026).
According to management, the buyback is implemented as a management instrument aimed at maintaining harmony between market conditions and fundamentals, as well as providing a positive signalling effect to investors and stakeholders.
In the long term, the implementation of the buyback is expected to provide flexibility for the company in optimally managing its capital structure and supporting sustainable business growth.
Management assures that the buyback will adhere to applicable laws and regulations as well as good corporate governance (GCG) principles. It is emphasised that this corporate action will not have a material impact on the company’s ability to finance capital expenditure or expansion plans.
“Company management has ensured that the buyback will be carried out in a measured manner, carefully considering the internal cash position, operational cash flow, and capital expenditure plans,” it stated.
For information, this corporate action will be carried out gradually through trading on the BEI and is targeted to be completed at the latest 12 months after obtaining approval from the General Meeting of Shareholders (GMS).
In detail, the number of shares to be repurchased is estimated to reach up to 3.289 billion shares or equivalent to around 4.6% of the company’s total placed and paid-up capital. Management emphasises that this action remains within the applicable regulatory limits, including free float provisions.
Management assures that the funds to be used for the buyback will not significantly affect the company’s financial capacity to meet upcoming obligations, as it uses the company’s internal funds and is not derived from public offerings or any form of debt financing.
To facilitate this corporate action, management will seek shareholder approval through a GMS on 8 May 2026. The buyback implementation period is estimated to run from 11 May 2026 to 8 May 2027, or a maximum of 12 months from the GMS date.
From a fundamental perspective, this action also has the potential to positively impact earnings per share. Based on pro forma financials as of 31 December 2025, basic earnings per share is projected to increase from Rp6.62 to Rp6.95 after the buyback, an rise of Rp0.33. Meanwhile, total equity is estimated to decrease from Rp31.05 trillion to Rp30.80 trillion in line with the use of buyback funds.