Textile issuer PT Trisula Textile Industries Tbk. (BELL) plans to buy back shares or buyback shares that have been issued by the company. In an information disclosure on the Indonesia Stock Exchange (IDX), the management of Trisula Textile said that the share repurchase will be carried out for 18 months after the company gets its blessing at the Extraordinary General Meeting of Shareholders (EGMS) to be held April 27, 2022. This buyback will start from the approval of the EGMS on 27 April 2022 until 26 October 2023. "The cost to be issued for the share buyback is a maximum of IDR 55 billion, including brokerage fees and other costs related to the share buyback," said management, Monday (21/3/2022).

In this corporate action, the issuer coded for BELL shares plans to buy a maximum of 10 percent or a maximum of 725 million shares.

BELL's management explained that the company's share repurchase was motivated by the company's current share price, which did not reflect the actual value or performance. Another buyback consideration is the slowing down of the national and world economy as a result of the Covid-19 pandemic which also has a negative impact on stock performance in general, including the company's shares.

"The implementation of the share repurchase is expected to improve the performance of the company's shares, as well as provide greater flexibility in capital management to achieve an efficient capital structure," said management.

The company will appoint PT Phillip Sekuritas Indonesia as a member of the stock exchange to buy back the company's shares through the stock exchange.

Meanwhile, at the close of trading today, Monday (21/3/2022), BELL shares were recorded to be closed in the green zone with an increase of 1 point or 1.47 percent to the level of Rp.69 per share. Since the beginning of the year to date or year to date (ytd), BELL's shares have fallen by 52.74 percent.