PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
66
24. ADDITIONAL PAID-IN CAPITAL March 31,
December 31, 2014
2013
Proceeds from sale of 933,333,000 shares in excess of par value through IPO in 1995
1,446 1,446
Excess of value over cost of selling 211,290,500 shares treasury stock phase I Note 25
544 544
Difference in value arising from restructuring transactions and other transactions between entities under common control
478 478
Excess of value over cost of treasury stock transferred to employee stock ownership program Note 25
228 228
Capitalization into 746,666,640 Series B shares in 1999 373
373
Net 2,323
2,323
Difference in value arising from restructuring transactions and other transactions of entities under common control amounting Rp478 billion arose from the early termination of the Company’s exclusive
rights to provide local and inter-local fixed line telecommunication services, for which the Company is required by the Government to use the funds received from this compensation for the development of
telecommunication infrastructure. As of March 31, 2014 and December 31, 2013, the accumulated development of the related infrastructure amounted to Rp537 billion.
25. TREASURY STOCK
Maximum Purchase Number
Phase Basis
Period of Shares
Amount
I EGM
December 21, 2005 - June 20, 2007 1,007,999,964
Rp5,250 II
AGM June 29, 2007 - December, 28, 2008
215,000,000 Rp2,000
III AGM
June 20, 2008 - December 20, 2009 339,443,313
Rp3,000 -
BAPEPAM - LK October 13, 2008 - January 12, 2009
4,031,999,856 Rp3,000
IV AGM
May 19, 2011 - November 20, 2012 645,161,290
Rp5,000
Movements in treasury stock as a result of the repurchase of shares are as follows:
March 31, 2014 December 31, 2013
Number Number
of shares Rp
of shares Rp
Beginning balance 3,699,142,800
3.67 5,805
5,054,652,300 5.01
8,067 Transfer to employees
ownership programme -
- -
299,057,000 0.29
433 Proceeds from sale of
treasury stock -
- -
1,056,452,500 1.05
1,829
Ending balance 3,699,142,800
3.67 5.805
3,699,142,800 3.67
5,805
Pursuant to the AGM of Stockholders of the Company held on June 11, 2010, the stockholders approved the changes to the Company’s plan for the treasury stock as a result of the Share Buyback
I, II and III, as follows: i sold, through or outside stock exchange; ii cancellation by deduct its equity; iii implementation of equity stock conversion and iv funding.
PERUSAHAAN PERSEROAN PERSERO PT TELEKOMUNIKASI INDONESIA Tbk AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS As of March 31, 2014 and for three months period then ended unaudited
Figures in tables are expressed in billions of rupiah, unless otherwise stated
67
25. TREASURY STOCK continued
Based on the Annual General Meeting of the Company on April 19, 2013, the Companys stockholders approved the change to the plan for the treasury stock phase III, which was decided to be used for the
implementation of the Employee Stock Ownership Program “ESOP” for the year 2013.
On May 31, 2013, the Company offered all its eligible employees and those of its subsidiaries collectively referred to as the “participants”, the right to purchase a fixed number of its shares at a
certain price. The shares have become an entitlement of the employees on the transaction dates and are no longer conditional on the satisfaction of any vesting conditions. Shares which are held by
employees through the ESOP have a lock-up period that varies from 0 up to 12 months, depending on the position of the employee.
In the lock-up period, participants may not transfer shares or have shares transactions either through or outside the stock exchange.
Price per share offered was Rp10,714 and each participant received allowance discount of Rp5,575 per share. At the closing of this program, the Company had transferred a part of the treasury
stock phase III to employees totaling 59,811,400 shares equivalent to 299,057,000 shares after the stock split with fair value amounting to Rp661 billion. The excess in value of treasury stock recovered
over acquisition cost of the stock amounting to Rp228 billion was recorded as additional paid-in capital Note 24.
The difference between the fair value of treasury stock and amount paid by the participants amounting to Rp353 billion is recorded in the consolidated statement of comprehensive income Note 27.
On July 30, 2013, the Company resold 211,290,500 shares equal to 1,056,452,500 shares after the stock split for the repurchase of shares of treasury stock phase I with fair value amounting to
Rp2,409 billion. The excess in value of the treasury stock sold over their acquisition cost amounting to Rp544 billion was recorded as additional paid-in capital net of related costs to sell the shares
Note 24.
