Sampoerna seeks approval for buyback

JAKARTA: Indonesian cigarette maker PT Hanjaya Mandala Sampoerna said Friday it will seek shareholders' approval for the buyback of its shares worth up to Rp 365 billion (US$40.4 million).

The company said it will seek approval from shareholders at its annual general meeting June 27.

Sampoerna will allocate a maximum of Rp365 billion for the buyback, which will be completed within 18 months after receiving shareholder approval, it said.

The buyback will be funded using a portion of the company's 2001 net profit.

"The repurchase of shares is made as an effort to increase shareholders' value in the company," Sampoerna said.

A reduction in the number of publicly held shares is likely to increase net profit per share and boost the stock price, it said.-- Dow Jones