Nation Media Group (NMG) has completed a share buyback program that began on 28th June 2021 and closed on September 24th 2021 at 3.00 pm. The exercise saw the media company buy back more than 17.1 Million of its ordinary shares at the Nairobi Securities Exchange(NSE) representing a performance rate of 82.25%.
The media house was targeting to buy back 10% of its issued shares equivalent to 20.74 Million at a price of KSh 25 per ordinary share. Any ordinary shares acquired through the buyback plan will be held at treasury shares.
Buyback is a corporate action in which a company buybacks its shares from the existing shareholders usually at a price higher than the market price. When it buys back, the number of shares outstanding in the market reduces.
A buyback allows companies to invest in themselves. By reducing the number of shares outstanding on the market, buybacks increase the proportion of shares a company owns. The reasons for buy-back are to improve earnings per share, return on capital, return on net worth and to enhance the long-term shareholder value.
Nation Media Group Outlook in 2022
With next year’s polls round on the horizon – NMG is expected to ride the surge in demand for radio and TV advertising by the political class to lift its performance further.
Following trends in the media business, NMG was also hard hit by the effects of COVID-19 pandemic as advertisers cut down on their spending.
READ; NMG Emerges from Losses to KSh 285.2 Million Half-Year Net Profit
