Centum Investment Plc has announced an extension to the share buyback programme that commenced on 6th February 2023 for the purchase of up to 10 per cent of the total issued and paid-up share capital of the company.
- The Share Buyback Programme, which aimed at stabilizing the company’s market value and stock price, had been approved for a period of 18 months up to Friday, 2nd August 2024.
- The company has so far bought back 9.8 million shares, with the maximum number of shares approved for purchase remaining at 66.5 million shares.
- The maximum price for the purchases was targeted at KSh9.03 and a minimum of KSh0.50, bringing the total spend to KSh600.9 million.
Share buybacks reduce the volume of outstanding stocks in turn boosting market valuation and stakes for remaining shareholders.
“It will reward long-term shareholders whose net asset value per share will improve as a result of the reduction in shares.” Centum CEO James Mworia noted in February 2023 adding that the buyback is anticipated to offer liquidity in the prevailing low market conditions.
The extension of the Share Buyback Programme has been approved by the Capital Markets Authority from 5th August 2024 and extends up to the Company’s next Annual General Meeting date proposed to be held 20 September 2024. Thereby, shareholders may approve a continuation of the Share Buyback Programme.
Centum recorded an impressive 135.6 percent jump in profit after tax to KSh2.6 billion in the financial year ended 31st March 2024, from a loss of KSh7.31 billion in the previous year. The improvement was on account of a double digit surge in profits from the real estate segment coupled with profit realization from the Two Rivers Special Economic Zone and a reduction in losses from investment operations.
Consequently, the company declared a KSh0.32 final dividend subject to approval by the shareholders.
“As we transition into the new strategy period named Centum 5.0, our focus is on optimization of the value of the current portfolio of investments. We are working towards scaling up the various businesses and monetizing them to realize a minimum of their carrying values,” Mworia said during the release.
Centum, under the ticker symbol CTUM on the Nairobi Securities Exchange, closed the previous trading session at KSh8.52 taking the year-to-date gain to 1.43 per cent.
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