Donaco International Limited (the Company) has announced the implementation of an on-market buy-back for a maximum of up to 41.5 million shares, representing a maximum of 5% of its ordinary shares on issue.
The buy-back is being undertaken as part of the Company’s ongoing capital management program, and is expected to commence on or after 30 October 2017.
Managing Director and Chief Executive Officer, Mr Joey Lim, stated “The Board considers that the introduction of an on-market buy-back is in the best interests of all shareholders, complementing our dividend payment.
“Our primary focus in assessing all potential uses of the Company’s cash holdings is to ensure a strong return for shareholders. Buying the Company’s shares at recent prices represents an excellent opportunity to generate strong returns.
“At current share prices, the buy-back will be earnings per share accretive, and will have no impact on current operating businesses. It is also consistent with our strategy of maintaining an efficient capital structure.”
In accordance with the ASX Listing Rules, the prices paid for shares purchased under the buyback will be no more than 5% above the average closing price of the Company’s shares over the five prior trading days.
The total number of shares to be purchased by the Company under the buy-back will depend on market conditions and volumes. The buy-back will be open for 12 months.
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