Nation Media Group PLC has announced its intention to initiate a second share buyback program. This move comes after the successful completion of its previous buyback program in 2021, which saw the company repurchase over 17.1 million of its ordinary shares on the Nairobi Securities Exchange (NSE).
The proposed share buyback, subject to shareholder approval, aims to acquire up to 10% of Nation Media Group’s issued and paid-up share capital through open market purchases on the NSE. The Board of Directors has recommended a minimum price equivalent to the par value of an ordinary share, with a maximum buyback price set at KES 20.00 per ordinary share. The final buyback price will be determined based on shareholder approval at the Annual General Meeting scheduled to take place on June 30, 2023.
The maximum number of ordinary shares that can be acquired under this buyback is 19,029,516, which represents approximately 10% of the company’s issued and paid-up share capital as of June 5, 2023. Any shares acquired through the buyback program will be held as treasury shares, ensuring that the number of shares outstanding in the market is reduced.
Nation Media Group‘s previous buyback program, conducted in 2021, aimed to repurchase 10% of the company’s issued shares, equivalent to 20.74 million ordinary shares. The buyback was executed at a price of KES 25 per ordinary share, resulting in the acquisition of treasury shares.
A share buyback is a corporate action whereby a company repurchases its own shares from existing shareholders, typically at a price higher than the prevailing market price. By reducing the number of shares outstanding, a buyback aims to enhance shareholder value and increase earnings per share.
