JSE-listed industrial brand management company Barloworld has announced that it will buy back up to 10% of its issued ordinary share capital through a repurchase programme.
The board said on May 26 that it was responsible for capital allocation and continuously monitored opportunities to enhance shareholder value through responsible capital allocation. Capital allocation priorities include the paydown of debt, returning capital to shareholders either through dividends or share buybacks and acquiring businesses in line with the group’s strategy.
The board said it had considered the progress on the various portfolio changes currently under way, the outlook for the Russian business and the stated objectives of first addressing the portfolio changes prior to embarking on acquisitive growth.
“Shareholders are reminded of the stated growth verticals being consumer industries, and industrial equipment and services,” Barloworld said.
The company said the recent fall in its share price created an opportunity to deploy capital through a structured share buyback programme.
The board said it considered the current decline in the share price, which was well below the group’s intrinsic value, and authorised a formal share buyback of up to 10% of the ordinary shares in issue, on the open market, in line with the general authority granted by shareholders at the last annual general meeting.