PT United Tractors Tbk (UNTR) is set to implement a share buyback program with a maximum value of IDR 2 trillion. This strategic corporate action is aimed at safeguarding stock price stability amidst fluctuating capital market conditions and concurrently enhancing value for its esteemed shareholders.
The company officially announced this significant buyback plan today through a detailed information disclosure published on the Indonesia Stock Exchange (IDX). In its announcement, quoted on Tuesday (31/3), UNTR management stated, “The execution of this share repurchase is a form of the company’s commitment to support government efforts in maintaining stability and fostering confidence within the Indonesian capital market.”
The disclosure document further specifies that the total value of the share repurchase is capped at IDR 2 trillion. Importantly, the number of shares to be bought back will not exceed 20% of the company’s issued and paid-up capital. A crucial condition stipulates that the public free float of shares must remain at a minimum of 7.5% of the issued and paid-up capital after the buyback is completed.
United Tractors anticipates that the share buyback process will be completed within a three-month window, specifically from April 1 to June 30, 2026. The funding for this substantial share repurchase initiative will be sourced entirely from the company’s robust internal cash reserves, ensuring it does not rely on external loans or proceeds from public offerings.
UNTR management firmly asserts that this planned buyback will not have a material impact on the company’s operational performance or overall financial condition. Management elaborated, “This is because the company currently possesses sufficient capital and healthy cash flow to capably undertake and finance all existing business activities, ongoing business development initiatives, daily operational endeavors, as well as the planned share repurchase.”
Based on the company’s financial report as of December 31, 2025, United Tractors recorded a net profit of IDR 15.2 trillion. Total assets stood at IDR 177.6 trillion and are projected to see a marginal decrease to IDR 175.6 trillion if the entire buyback fund is fully utilized. Concurrently, total equity is forecast to decline from IDR 103.1 trillion to IDR 101.1 trillion.
Nevertheless, net profit per share is expected to experience a positive uplift, increasing from IDR 4,082 to approximately IDR 4,237 per share following the buyback’s completion. The company maintains that this specific change will not significantly impact its overall financial indicators, highlighting the strategic nature of the move.
Upon the conclusion of the buyback period, all repurchased shares will be meticulously held as treasury shares. The company has explicitly stated that these shares can be re-transferred in the future, in strict accordance with prevailing regulatory provisions, particularly if the company requires additional capital for its growth or operational needs.
Ultimately, UNTR management expresses optimism that this strategic share repurchase initiative will send a resounding positive signal to investors regarding the company’s strong underlying fundamentals, while also effectively contributing to maintaining crucial share price stability amidst prevailing market volatility.