JSE-listed Reunert, which owns Nashua Mobile and other technology companies, has bought back another 3% of its ordinary share capital for R392,8m. The purchase brings to nearly R1,2bn in shares the company has bought back in the past year.
Like dividends, share buybacks are a way of boosting value for shareholders. Because fewer shares are in issue, they help lift earnings per share and, in turn, the company’s share price.
In the past year, Reunert has bought back 17,7m shares, which are now being held as treasury stock.
The company had shareholder approval to buy back as much as 20% of its ordinary shares in the past year. However, this authorisation expires this week. Reunert says it will seek approval to continue the repurchase programme.
All repurchases have been funded through Reunert’s cash resources. Its share price has risen 17% in the past 12 months. — Staff reporter, TechCentral
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