Bakrie & Brothers Cuts VKTR Stake, Nusantara's Rp87 Billion Ceremony Tops Jakarta, PwC Loses Bank of China, and Santander Initiates €1.7 Billion Buyback
By Falito VIllienuve Tandra, Iman Satyo Adi, and Salma Farah Faiza
August 30, 2024 at 16:30 GMT+7
PT VKTR Teknologi Mobilitas Tbk (VKTR) during its IPO on the Indonesia Stock Exchange | Source: TnP Law Firm
Silvery Moon Investment Ltd has acquired a 10.63% stake in PT VKTR Teknologi Mobilitas Tbk, purchasing 4.65 billion shares for Rp465 billion. This strategic move, completed on July 31, 2024, underscores Silvery Moon's confidence in VKTR's potential, especially within the competitive mobility technology sector.
The acquisition has reduced PT Bakrie & Brothers Tbk's ownership from 41.04% to 30.41%, as part of their effort to manage financial liabilities. VKTR shares remained steady at Rp122, with market sentiment cautiously optimistic about the company's future amidst these significant changes.
President Jokowi leads the Proclamation of Independence Ceremony in the new capital city of Nusantara | Source: Cabinet Secretariat of the Republic of Indonesia
The Indonesian government has allocated Rp87 billion for the 79th Independence Day ceremony at the new Nusantara Capital (IKN), significantly exceeding the Rp53 billion spent in Jakarta. The increased budget reflects the unique challenges of hosting the event at IKN, including the need for extensive procurement and infrastructure development in the nascent capital.
The event's larger scale, requiring expanded guest accommodations and specialized facilities, further contributed to the heightened costs. This investment underscores the government's commitment to establishing IKN as a prominent national venue and advancing its development as Indonesia’s new ceremonial hub.
PwC Office Building | Source: Bloomberg
PwC has lost its largest mainland China-listed client, Bank of China, to rival EY amid growing regulatory scrutiny. Initially set to reappoint PwC for 2024, the state-owned bank has now decided to appoint EY, a move pending shareholder approval.
This shift follows a regulatory probe into PwC’s audits of China Evergrande Group, involved in a US$78 billion fraud investigation. PwC's loss of the Bank of China, along with other major clients like China Life Insurance, signals a significant financial impact and raises concerns about PwC's long-term stability in the Chinese market.
Santander Bank | Source: American Banker
Santander Initiates €1.7 Billion Buyback After Record Profit Figures
Santander has launched a €1.525 billion (US$1.7 billion) share buyback program, representing around 50% of its underlying profit, divided equally between cash dividends and buybacks. This initiative follows the bank's record €6.06 billion net profit in the first half of 2024. After the announcement, Santander's shares rose 1.7% to €4.40, outpacing Spain's Ibex-35 index, which gained 0.25%.
The buyback program, which could last until January 3, 2025, is part of Santander's strategy to enhance shareholder returns and further strengthen its financial position in the market. The interim dividend decision is expected in September 2024.
Sources:
Bloomberg
CNBC
Reuters
Comments