Nation Media Group (NMG) has begun Kenya’s first share buyback programme at the Nairobi Securities Exchange(NSE).
A share repurchase or buyback refers to when the management of a public company decides to buy back company shares that were previously sold to the public.
The media house targets buying back 10% of its issued shares between 28th June 2021 and September 24th 2021. At its recent shareholders’ meeting held on 25th June 2021, the firm’s shareholders approved the buyback of up to 10% of the media group’s issued and paid-up share capital.
Based on this approval, the Nation Media Group Board of Directors is proceeding with the plan with the buyback price set at KSh 25 per ordinary share.
The share repurchase will be by way of open market purchases through the NSE and opened simultaneously when trading begins at the NSE this Monday, 28th June 2021.
The buyback is expected to close when the firm completes buying up to 10% of its issued share capital or at 3.00 pm on September 24th, 2021.
According to a notice and circular to shareholders, the maximum number of ordinary shares that may be acquired under the buyback plan is 20,739,652 representing approximately 10% of the firm’s issued share capital.
Any ordinary shares acquired through the buyback plan will be held at treasury shares, said NMG in a public announcement.
ALSO READ: Nation Media Group Shareholders to Approve Share Buyback
