Nation Media Group’s (NMG) share buy-back program has achieved 74.23% of the targeted 20,739,652 ordinary shares. This amount represents 10% of the company’s issued share capital. This has been achieved only 13 days after the opening of the Share Buy-back on 28th June, 2021.
A Share Buyback occurs when a company purchases a portion of its issued shares from its shareholders. It is one of the ways for a company to return funds to shareholders.
Speaking on the Share Buy Back program, Bob Karina, Chairman of Faida Investment Bank said, “Given the trend that we have seen, it is likely that the offer will close before 3.00 pm on Friday 24th of September, 2021. We therefore encourage shareholders who are planning to sell their shares at the Buy-back price of Ksh. 25 per share not to wait until the last minute. Shareholders who would like to take up this offer should contact their stockbroker or Faida Investment Bank Limited”.
Faida Investment Bank provides services in financial advisory, capital raisings, securities trading and investment management to a diverse base of investors with economic interest in Kenya and East Africa.
On May 27th May, 2021, the Capital Markets Authority approved NMG’s purchase of up to 10% of its issued and paid-up capital as an open market share Buy-back program in accordance with the provisions of the Companies Act. The Buyback program will give NMG shareholders an option to cash in on their investments and will offer them an alternative option to realize value from their investment.
The Buy-back offer is expected to close earlier, with NMG buying up to 10% of its issued share capital or as at 3.00 pm on Friday 24th September, 2021. This is in accordance with the terms of a shareholder circular issued to shareholders.