The Financial Services Authority (FSA) has issued a Circular Letter to regulate the buyback of shares and the subsequent public-to-private transition of a company due to a listing cancellation.* The Circular was enacted on 6 September 2023. The Circular sets out the share buyback procedures for a public company, the listing of which has been cancelled by the Stock Exchange due to a condition or an event which significantly negatively affected the company’s business continuity.

A public company, the subject of such a listing cancellation, must begin the share buyback from public shareholders no later than 30 days after the Stock Exchange has announced the cancellation to the public.

Similarly, a public company, the subject of such a listing cancellation, must begin the process to change its status from public to private no later than 30 days after the decision to cancel its listing is effective – which is the date that the company’s change of status has been announced at the general shareholders meeting.

Failure to comply with the provisions of the Circular may result in administrative sanctions.

* Circular Letter No. 13/SEOJK.04.2023 of 2023 on the Buyback of Shares of Publicly Traded Companies as a Result of the Cancellation of Listing of Securities by the Stock Exchange due to Conditions or Events that have Significant Negative Impacts on the Business Continuity.