Centum Investment Company has commenced a programme to buy back up to 66,544,178 of its ordinary shares following shareholder approval of the plan.
A second resolution by the shareholders authorised directors of the company to re-allot shares acquired through the buyback, which received the approval of 98.44 per cent of shareholders.
“The share buyback is expected to provide liquidity to shareholders who may not have been able to trade due to the current depressed market conditions. It will reward long-term shareholders whose net asset value per share will improve as a result of the reduction in shares,” said Centum Group CEO James Mworia.
The maximum purchase price in the programme is set at KSh9.03 per ordinary share and a minimum of KSh0.50 per share, as per the Capital Markets Authority regulations.
The buyback will be conducted over 18 months from the date of the resolution, closing on August 8 2024.
All shareholders are free to cash in through the buyback programme, subject to the authorised limit on the company’s ability to buy back 10 per cent of its ordinary shares.
Shareholders who choose to stay may benefit from an increase in the company’s share of future earnings and capital gains.
The transaction will see Centum reduce its outstanding shares to 598.9 million shares, from the current 665.4 million shares, with the shares bought classified as treasury stock after shareholder approval.
