Centum Opens 66.5 Million Shares Buyback Following Shareholders’ Approval – Kenyan Wallstreet

Centum Investment started a 66.5 million share repurchase program on Monday to stabilise the Company’s market value and stock price after getting the green light from shareholders.

The Company has allocated KES 600.8 million for this effort. On Friday, the Company’s shares ended trading at KES 8.74.

The Company opened the day’s trading at KES 8.84, a 0.69 per cent gain after the share buyback went live on Monday. Furthermore, the market closed at KES 8.90, recording a two per cent increase compared to the previous trading day.

The shareholders approved a resolution that authorised the Company to buy up to 66,544,178 ordinary shares, 10 per cent of the total issued and paid-up share capital.

Additionally, the company directors were also authorised to re-allot shares acquired through the buyback due to another resolution that received the shareholders’ approval.

We will now, beginning Monday, February 6, start buying the shares through on-market purchases at the Nairobi Securities Exchange as authorised by the regulator and our shareholders.

Centum Group CEO – James Mworia

He also mentioned that the share buyback is anticipated to offer liquidity to shareholders who may have faced difficulty in trading due to the prevailing low market conditions.

It will reward long-term shareholders whose net asset value per share will improve as a result of the reduction in shares.

Centum Group CEO – James Mworia

As per the regulations of the Capital Markets Authority, the maximum purchase price for each ordinary share has been set at KES 9.03 and the minimum at KES 0.50.

The buyback program will run for 18 months starting from the date of the resolution and will end on August 8, 2024. All shareholders are eligible to participate. However, the Company’s buyback limit is restricted to 10% of its ordinary shares. By remaining as shareholders, they stand to benefit from an increase in the company’s future earnings and capital gains.

The Centum board of directors retains the right to halt the buyback under certain circumstances, including if it is no longer in the best interest of the Company and shareholders, in response to changes in economic and market conditions, or in the case of a significant shift in the Company’s financial position.

Read Also: Centum Exits Buyout Deal with Access Bank

Beryl Onyango

Beryl Onyango is a CPA and economics degree holder who has dedicated her career to helping others navigate the complex world of finance. Beryl has spent the past 3 years working as a finance specialist in a fintech company and has 6 years of experience in finance, working with a diverse range of clients and industries. Beryl's expertise lies in budgeting, saving, investing, and retirement planning, but she also has a deep understanding of various other areas of finance. She is interested in financial technology and how it changes how we manage our finances. As a finance writer, Beryl has been sharing her insights and knowledge through her writing, covering various finance and personal finance topics. Her goal is to educate and empower individuals to take control of their finances and achieve their financial goals. In addition to her professional experience, Beryl is a lifelong learner, always seeking to expand her knowledge and stay up-to-date with the latest developments in finance. She is also a strong communicator, able to explain complex financial concepts in a clear and easy-to-understand manner. Beryl believes that financial literacy is the key to achieving financial success, and she is dedicated to helping others achieve their financial goals.

Related Articles

Leave a Reply

Back to top button
WP Twitter Auto Publish Powered By : XYZScripts.com