Avia Avian Acquires 16.67% of Dextone for US$16.9 Million

JAKARTA, investortrust.id – Avia Avian, an Indonesian decorative paint manufacturer, invests in adhesives by acquiring 16.67% shares in Dextone Lemindo for Rp 275.84 billion (US$16.9 million). The company aims to broaden its product range and strengthen its market foothold in the region.

PT Avia Avian Tbk AVIA, in its official statement on Friday, Mar. 14, 2025, confirms the transaction took place on Thursday, Mar. 13, 2025. “The company invests in 16.67% shares of Dextone, which is engaged in the adhesives and glue industry,” wrote Avia Avian’s management in a statement to the Indonesia Stock Exchange.

With Avia Avian’s entry, the new shareholding composition of Dextone Lemindo is as follows: PT Sinar Panca Kencana maintains its controlling stake of 66.66%, PT Ksatria Artha Sentosa holds 16.67%, and Avia Avian holds 16.67%. This investment is part of Avia Avian’s strategy to expand into the adhesives sector, with its subsidiary PT Tirtakencana Tatawarna set to distribute Dextone’s products.

Dividend and Meeting

Earlier, Avia Avian conducted its annual shareholder meeting in Surabaya on Thursday, Apr. 4, 2024, declaring a total dividend of Rp 1.36 trillion. The decision reflects the company’s robust financial position, underscoring its commitment to delivering shareholder value.

(Photo caption: Chief Executive Officer of Avia Avian presents the 2024 dividend distribution of Rp 1.36 trillion during the Annual General Meeting at Avia Brands Building, Surabaya, on Thursday, Apr. 4, 2024. Photo: Avia Avian.)

Share Buyback for Price Stability

Avia Avian management previously announced plans for a Rp 1 trillion share buyback. This initiative seeks to stabilize the company’s share price, which it deems undervalued relative to the company’s intrinsic performance and fundamentals. “The buyback is intended to boost investor confidence in Avia Avian shares,” the official statement said.

According to the most recent market data, Avia Avian shares closed at Rp 406 on Thursday’s trading session. The buyback is set to proceed once approved at an extraordinary shareholder meeting on Thursday, Apr. 10, 2025. The company intends to fund the buyback using its internal cash reserves, asserting that it will not significantly affect its financial capacity to meet near-term obligations.

Financial Performance

Avia Avian recently reported a 1.35% rise in net profit attributable to the owners of the parent company for full-year 2024, reaching Rp 1.66 trillion—up from Rp 1.64 trillion in the previous year. Audited financial statements show consolidated sales of Rp 7.5 trillion for the same period, marking a 6.5% increase year on year. Meanwhile, sales volume also climbed 5% compared to the previous year, reflecting the continued market demand for the company’s decorative paint products.