Centum Investment Company Plc’s board has approved a plan to buy back up to 10 per cent of the firm’s issued and paid-up share capital in a bid to rescue the firm’s share price.
In line with Capital Markets Authority (CMA) share Buyback regulations, the firm will buy shares at a value of sh0.03 per share, 10% above the 30 days prior to the board approval value Weighted Average Price.
The closing price on Friday, 25 November 2022 was Sh7.98 and the nominal share price of the Company is Sh0.50 per share.
The minimum offer price shall be Sh0.50 per share in accordance with the CMA Guidelines.
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Centum Group CEO, James Mworia said the share buyback plan is intended to provide liquidity for the shares of the dual-listed firm as well as reward long term shareholders of the company whose proportionate holding will increase because of the buyback of the Company’s shares at the current prices that are deeply discounted relative to Net Asset Value per Share.
“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,” said Mworia.