Jakarta - PT Lippo Karawaci Tbk ("LPKR" or "Company"), Indonesia’s leading real estate company based on total assets and revenue, announced the launching of a share buyback program valued at up to Rp75 billion in shares. Based on the current share price, this implies that LPKR plans to buy back over 572 million shares through transactions that will likely be executed in the upcoming weeks.
The Company is buying the shares at a compelling discount to NAV just as a number of projects are set for handover in 2020 including Fairfield and Hillcrest Towers in Karawaci and Holland Village Jakarta. LPKR is to make use of its strong cash reserve following several successful financial activities recently, including the timely five-year bond issuance, the timely changing of hedging strategy and the sale of its shares in First REIT.
The Company is supporting the OJK’s recent relaxation of its share buyback policy that will allow Company’s to repurchase shares. This will help to stabilize Lippo Karawaci’s share price and management believes it is the best use of excess cash. The plan is estimated to have an immaterial impact to LPKR’s operational expenses. In addition, the buyback is also estimated to not decrease the company’s revenue. LPKR is confident that the buyback will not give material impact on the company’s business activities as it has sufficient working capital and cashflow to support the operations, as well to execute the transaction.
John Riady, CEO LPKR, commented, "LPKR supports the overall economic plan developed by the government to stabilize the Indonesian economy in this unprecedented time." John added, "Lippo Karawaci has made preparations in strengthening our financial positions so that it has flexibility in the highly volatile financial markets.” Mr. Riady further noted, “This buyback is timely because we find the share price attractive and a prudent use of our cash. We remain optimistic with the Company’s underlying fundamentals, especially given that a significant proportion of our revenue is recurring in nature and supported by Siloam Hospitals.”
About Lippo Karawaci (“LPKR”) (www.lippokarawaci.co.id)
Listed on the Indonesia Stock Exchange, Lippo Karawaci (“LPKR”) is Indonesia’s leading integrated real estate company with total assets of US$4.0bn at 30 September 2019. Our core business comprises urban residential developments, lifestyle malls and healthcare. We are also actively involved in integrated developments, hospitality, township development and management, as well as asset management services.
Currently, the Company has a presence in 35 cities, and is a leading Indonesian property developer with 1,461 ha of landbank ready for development. Through our two publicly listed subsidiaries, PT Lippo Cikarang Tbk, and PT Gowa Makassar Tourism Development Tbk, of which LPKR owns 81.0% and 62.7% respectively, LPKR develops and operates urban developments at Lippo Cikarang in Bekasi and at Tanjung Bunga in Makassar. Additionally, LPKR owns 51.05% of PT Siloam International Hospitals Tbk, Indonesia’s leading private hospitals network, with 36 hospitals across 24 cities nationwide.
LPKR also has an ownership stake in two listed REITs in Singapore, namely First Real Estate Investment Trust and Lippo Malls Indonesia Retail Trust with US$1.0bn and US$1.4bn of assets under management respectively, as of 30 September 2019.
For more information, please contact:
Investor Relations:
Bret Ginesky
Head of Investor Relations
[email protected]
Office: +622125669078
Corporate Communications:
Danang Kemayan Jati
Vice President, Head of Corporate Communications
[email protected]
Office: +628557801299
This press release has been prepared by PT Lippo Karawaci Tbk (“LPKR”) and is circulated for the purpose of general information only. All opinions and estimations included in this release constitute our judgment as of this date and are subject to change without prior notice. LPKR disclaims any responsibility or liability whatsoever arising which may be brought against or suffered by any person as a result of reliance upon the whole or any part of the contents of this press release and neither LPKR nor any of its affiliated companies and their respective employees and agents accepts liability for any errors, omissions, negligent or otherwise, in this press release and any inaccuracy herein or omission here from which might otherwise arise.
Forward-Looking Statements
Certain statements in this release are or may be forward- looking statements. These statements typically contain words such as "will", "expects" and "anticipates" and words of similar import. By their nature, forward looking statements involve a number of risks and uncertainties that could cause actual events or results to differ materially from those described in this release.
