Grace extends buy back shares programme
Conglomerate GraceKennedy has extended its share repurchase programme to December 31, 2014.
The share repurchase programme, initially approved by the board in February last year and started on October 17 that year, was for the purchase of up to a maximum of 2.5 per cent of the shares of the company over a one year period.
The company has so far repurchased 3,847,550 of the maximum 8,382,965 units, Grace said in a release.
GraceKennedy said there was no change in the administration of the programme and the repurchase of shares will continue to be conducted on the open market through the company’s stockbrokers in Jamaica and Trinidad & Tobago.
The company’s cash flows will be the source of funds for the share buy back.
GraceKennedy has not set a fixed price for the repurchase. The price for the acquisition will be the market price at the time of the repurchase. The company said it continues to reserve the right to decline any offer above the ceiling that it may from time to time determine.
In keeping with the requirements of the Companies Act, within 30 days of the dates of the repurchase of shares, GraceKennedy will advise its stockholders of the number of shares purchased, names of stockholders from whom they were purchased and the price paid.
Group CEO Don Wehby said the company is of the view that its share price is below the true value and an opportunity exists to enhance shareholder value.
The share repurchase will serve to utilize excess liquidity in the company and raise earnings per share.