Centum Investments Plc has announced shares buyback program to purchase up to 10% of the issued and paid-up share capital of the Company.
In a notice sent to the shareholders and the public on November 29, the company said that the decision was made by the board, with the buyback expected to commence after shareholder approval.
“The buyback programmer is proposed to be undertaken through on-market purchases at the Nairobi Securities Exchange over a period of 18 months from the date of the shareholder resolution approving the buyback programme,” said Centum in a statement.
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The shares, which will be bought through the Nairobi Securities Exchange (NSE), will be bought at a maximum of Ksh.9.03 and a minimum of Ksh.0.50, with the purchased shares expected to be held by the company.
“The Buyback Programme is proposed to be undertaken through on-market purchases at the Nairobi Securities Exchange over a period of 18 months from the date of the shareholder resolution approving the Buyback Programme…. The maximum price shall be Kes. 9.03. being 10% above the weighted average price of Kes. 8.21 in the 30 days prior to the date of the Board resolution. The minimum price shall be Kes 0.50, being the lower of the nominal price kes. 0.501 and the prevailing market price on the date of the Board resolution Kes. 7.98,” said Centum.
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“The shares purchased under the BuyBack Programme shall be held by the Company in treasury and are not proposed to be cancelled.” the company said in a statement”
Centum’s latest move comes at a time when the company continues to operate under sustained losses, with comprehensive losses of half-year ended September 2022 amounting to Ksh.1.5 billion.
The NSE-listed entity said the losses were attributable to factors such as unrealized Fx losses due to the depreciation of the Kenyan Shilling against the US dollar and a decrease in interest expenses over the period.
“The consolidated comprehensive loss increased to Ksh.1.5 billion from Ksh.244 million driven by the recognition of an unrealized translation loss of Ksh.261 million on account of the depreciation of the Ksh. against the UGX in the period in respect to our UGX denominated assets,” said Centum.
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