Innscor considers share buy-back

Innscor Africa Limited directors seek shareholders' approval to purchase its own shares listed on the Zimbabwe Stock Exchange at the next Annual General Meeting (AGM) next month.

Innscor will hold its 21st AGM on December 6, 2017 with share buy-back on cards.

According to Investopedia, share buy-back refer to the repurchasing of shares of stock by the company that issued them.

Companies issue shares on the stock exchange to raise money for its operations, purchase equipment and money to pay off debts among others.

Share buy-back indicates that Inncor's directors have confidence in the company's future outlook and aim to make the business attractive to investors.

"In terms of this resolution, the Directors are seeking authority to allow use of the Company's available cash resources to purchase its own shares in the market in terms of the Companies Act and the regulations of the ZSE.

"The Directors will only exercise the authority if they believe that to do so would be in the best interests of shareholders generally," said Innscor company secretary Andrew Lorimer in a statement.

The AGM is set to receive and consider the financial statements for the financial year ended June, 30 2017.

Retiring directors, Zinona Koudounaris and Godfrey Gwainda, who retire by rotation and being eligible offer themselves for re-election.

The AGM will also seek to approve directors' fees for the financial year ended June 30, 2017.

Remuneration and re-appointment of Messrs - Ernst & Young as Auditors of the Company until the conclusion of the next Annual General Meeting will also be on the agenda.

Innscor recorded 16 percent growth in profit after tax to $18 million for the half year to December 31, 2016, from $15,8 million in the prior year.

The light industry firm owns National Foods, Colcom, Irvine's Zimbabwe, Bakers Inn, Natpak, Bedra Enterprises, Profeeds and Probrands.