Business / Companies
Delta Corporation wants to buy back its shares
25 Jun 2013 at 18:25hrs | Views
DELTA CORPORATION, the country's largest company in value terms, will seek shareholders' approval at the next annual general meeting to buy back at least 10 percent of its issues ordinary share capital.
With about 1,2 billion ordinary issued shares, the company would be seeking to repurchase 120 million shares.
The maximum and minimum prices, at which such ordinary shares may be acquired, will not be more than 10 percent above or below the weighted average of the market price on the Zimbabwe Stock Exchange as determined over the five days immediately preceding the date of the purchase.
Delta, the brewer and bottler of lagers, soft drinks and opaque beer, traded unchanged yesterday at US149c.
A share buy back is a programme by which a company buys back its own shares from the market to reduce the number of outstanding shares.
Share repurchase is usually an indication that the company's management believes the shares are undervalued.
The company can buy shares directly from the market or offer its shareholders an option to tender their shares directly to the company at a fixed price.
Because a share repurchase reduces the number of shares outstanding, it increases earnings per share and tends to elevate the market value of the remaining shares.
With about 1,2 billion ordinary issued shares, the company would be seeking to repurchase 120 million shares.
The maximum and minimum prices, at which such ordinary shares may be acquired, will not be more than 10 percent above or below the weighted average of the market price on the Zimbabwe Stock Exchange as determined over the five days immediately preceding the date of the purchase.
Delta, the brewer and bottler of lagers, soft drinks and opaque beer, traded unchanged yesterday at US149c.
A share buy back is a programme by which a company buys back its own shares from the market to reduce the number of outstanding shares.
Share repurchase is usually an indication that the company's management believes the shares are undervalued.
The company can buy shares directly from the market or offer its shareholders an option to tender their shares directly to the company at a fixed price.
Because a share repurchase reduces the number of shares outstanding, it increases earnings per share and tends to elevate the market value of the remaining shares.
Source - newswires
