Indonesian mobile network operator (MNO) XL Axiata has reportedly announced a share buyback programme worth up to IDR500 billion (USD31.9 million). IndoTelko writes that the MNO’s share buyback is taking place on the local stock market over the three-month period 7 April 2020 to 6 July 2020.
In announcing its decision, XL’s management explained that it considers its current share price, which is approaching an all-time low, ‘does not reflect true business fundamentals’ and that the buyback programme is designed to send ‘a positive signal to the market and instil confidence in XL Axiata’s long-term prospects’. President Director & CEO Dian Siswarini noted: ‘Current market sentiment has been very weak due to concerns surrounding COVID-19. This has affected the stock prices of all companies, and even our stock prices are not immune from that sentiment, which is currently trading at prices close to all-time lows. We believe that the current share price level does not reflect the fundamentals of our business, and that’s why we initiated this buyback programme’.