PT Sarana Menara Nusantara Tbk ("SMN"), the parent company of Protelindo, iForte and KIN, announced today that its general meeting of shareholders has granted approval for the management of SMN to undertake a share buyback program in accordance with OJK rules and regulations. The share buyback as approved will be for a maximum of 5% of paid up shares equivalent to 2,550,573,125 shares. OJK rules stipulate that the maximum price paid per share pursuant to a share buyback program must be the same or lower than the average traded share price over the proceeding 25 days if done through the negotiated market or the previous days’ closing price if done through regular trading on the IDX. The share buyback program is valid for a period of 18 (eighteen) months from the date of shareholder approval of the program.
“It is evident that the telecommunications industry in Indonesia continues to grow and that there is a continuing need for investment in communications infrastructure. SMN management believes that the Company's share price does not reflect the Company's inherent value. SMN's revenue has grown by 30% over the past 3 years while the share price has stagnated over the same period. With the approved share buyback we will be able to continue investing in our business while returning value to our shareholders,” said Bapak Aming Santoso, President Director of SMN. “The share buyback program is a deepening of our "Buy, Build, Return" strategy and is complementary to our sustainable dividend policy." concluded Bapak Aming Santoso. SMN management initially plans to hold shares purchased in the market as treasury shares. "We will consider treasury shares as currency that may be used in possible future acquisition activity," mentioned Adam Gifari, Vice-President Director of SMN "We have found that some parties are interested in a share component as part of an acquisition." SMN recently completed the purchase of KIN and, with its strong balance sheet, is actively interested in pursuing possible additional acquisition.
SMN booked revenue growth of 8.5% yoy to reach IDR 2.8 trillion for 1H2018. The Company has over 1,100 tower leases orders and orders for more than 2,000 km of fiber optic cables in the pipeline that SMN management expects to be completed in the second half of 2018.
SMN is traded under the ticker "TOWR" on the Indonesian Stock Exchange (IDX).