Centum Investment Plc has extended its share buyback programme, which began on February 6, 2023. The programme aims to repurchase up to 10.0% of the company’s total issued and paid-up share capital.
Originally approved for 18 months, ending on August 2, 2024, the programme is designed to stabilize the company’s market value and stock price. To date, Centum has repurchased 9.8 million shares, with the authorization to buy back up to 66.5 million shares. The share purchases were conducted at a maximum price of KES 9.0 and a minimum of KES 0.5, totaling KES 600.9 million.
Share buybacks reduce the number of outstanding shares, thereby increasing market valuation and the stakes of remaining shareholders. Centum CEO James Mworia stated in February 2023 that the buyback would reward long-term shareholders by improving the net asset value per share and providing liquidity in a low market environment.
The Capital Markets Authority has approved the extension of the programme from August 5, 2024, until the company’s next Annual General Meeting on September 20, 2024. At this meeting, shareholders may vote to continue the buyback programme.
Centum reported a significant 135.6% increase in profit after tax, reaching KES 2.6 billion for the financial year ending March 31, 2024, compared to a loss of KES 7.3 billion the previous year. This turnaround was driven by substantial profit growth in the real estate sector, gains from the Two Rivers Special Economic Zone, and reduced losses from investment operations.
As a result, the company has proposed a final dividend of KES 0.32, pending shareholder approval.
CEO James Mworia highlighted that Centum is entering a new strategic period called Centum 5.0, focusing on optimizing the value of its current investment portfolio. The company aims to scale up and monetize its businesses to achieve at least their carrying values.
On the Nairobi Securities Exchange, Centum, trading under the ticker symbol CTUM, closed the previous session at KES 8.94, marking a year-to-date gain of 1.4%.
