GTS International: When the Majority of Shareholders Failed the Buyback Plan

Jakarta - An important decision was taken at the Extraordinary General Meeting of Shareholders (EGMS) of GTS International (GTSI). In the midst of mounting tensions, the company's plan to carry out a share buyback was finally firmly rejected by the majority of shareholders.
Previously, GTSI had prepared a thorough plan to buy back 790,957,138 shares, worth IDR 39.54 billion. With a nominal price of IDR 50 per share, this buyback plan aims to increase share liquidity and maintain price stability in the future. The company feels this move is important, especially as its shares have been slumping on special monitoring boards.

However, this company's hopes seemed to be dashed when the voting results were announced. Of the 13.41 billion valid votes present, 99.28 percent or around 13.41 billion votes rejected the plan. Only a handful, to be precise 0.71 percent or around 96.03 million votes, expressed support. This figure shows how strong shareholder resistance is to this buyback plan.

GTSI believes that the buyback will not disrupt the company's operations. With internal cash estimated to decrease by a maximum of IDR 39.74 billion, the company is optimistic that it can run its business without disruption. In fact, with cash flow recorded at IDR 336.07 billion in the financial report as of December 31 2023, the decline was only around 12 percent.

However, behind all these plans and optimism, reality says otherwise. Shareholders, who actually have power over the company's future, chose to refuse. The reasons behind this rejection may be varied, but one thing is clear: they want a different direction for the company.

This rejection indicates that shareholders do not see the buyback as a solution to the problems faced by the company. Maybe they feel there are other strategies that are more effective for increasing share value and maintaining company stability in the future.

The GTSI story is a reminder that in the business world, big decisions are not only taken in the board of directors' meeting room, but also in the hands of shareholders. This EGMS proves that their voices have the power to change the company's direction. GTSI must now go back to the planning board, contemplating a new strategy that might be more in line with the desires of the majority of shareholders.

However, this decision marks a new chapter in GTS International's journey. How much impact will this rejection have on the company's future? Only time can tell. Meanwhile, the business world will continue to watch GTSI's next steps, awaiting with great enthusiasm what the next chapter will bring.