Site icon MONEYINAFRICA

Kenya: Nation Media stock repurchase could prompt further buybacks

Nairobi Securities Exchange

Inside the Nairobi Securities Exchange. REUTERS/Thomas Mukoya Plans by Nation Media to carry out Kenya’s first share buyback may be copied by other companies needing to reward shareholders as stock prices languish.

The company proposed buying back up to 10% of its stock in a circular sent to shareholders on 31 May. The buyback, subject to shareholder approval, will run until 24 September.

Share buybacks (repurchase of existing stock from the market) reward shareholders by reducing number of shares in circulation thus increasing the size of remaining stakes. They don’t generate tax liabilities as with dividend payments, and are seen as a sign of management confidence in the company. All else being equal, they will cause the share price to rise.

Give yourself a headstart:
Get full access to The Africa Report on all your devices.

Stay in the Know!

Sign up for the latest news and information on African Companies and Economy.

By signing up, you agree to receive MoneyInAfrica offers, promotions and other commercial messages. You may unsubscribe at any time.
Exit mobile version