Investment holding company Centum Plc has announced a share buyback programme which aims to purchase of up to 10% of the issued and paid-up share capital of the Company.
“The Buyback Programme is proposed to be undertaken through on-market purchases at the Nairobi Securities Exchange over a period of 18 months from the date of the shareholder resolution approving the Buyback Programme…. The maximum price shall be Kes. 9.03. being 10% above the weighted average price of Kes. 8.21 in the 30 days prior to the date of the Board resolution. The minimum price shall be Kes 0.50, being the lower of the nominal price kes. 0.501 and the prevailing market price on the date of the Board resolution Kes. 7.98. The shares purchased under the BuyBack Programme shall be held by the Company in treasury and are not proposed to be cancelled.” the company said in a statement.
The transaction adviser for the share buy back programme is Faida Investment Bank.
Centum 6- Month Financial Results
This announcement comes as the company reported its financial results for the six month period ended September 2022, reporting a total comprehensive loss of Kes 1.6 Billion compared to Kes 244 Million in the prior period.
The Nairobi Securities Exchange listed company said the performance was primarily driven by the impact of unrealised foreign exchange losses on USD liabilities and UGX denominated assets following the depreciation of the Kenya Shillings against these currencies in the period. Longhorn Publishers, a trading subsidiary, recorded a decline in performance in the period compared to prior year, occasioned by a decline in sales.
The company also blamed increased finance costs at subsidiary level following the upward adjustment of lending rates in line with the rising interest rates.
“A 33% decline in interest income was recorded following the restructure of one of the shareholder loans in the 2nd half of FY2022. Operating and administrative costs reduced by 22% as cost efficiency improved to 37% from 39% as at 31st March 2022.” The company said in a statement.
Finance costs declined by 8% following cancellation of USD 21.4Mn portion of bank guarantee issued in favour of Coca Cola Beverages Africa.
In line with the company valuation policy, the private equity portfolio was not revalued as at 30th September 2022 and hence no valuation movements were recognised.