Nation Media Group (NMG) has announced a second buy back program, with the media giant aiming to buy back 10% of its shares at the Nairobi Securities Exchange (NSE).
In a cautionary notice issued on May 25, it disclosed that the board had resolved to propose to shareholders the purchase of up to 10 per cent of the company’s issued and paid up share capital in a buyback program. The buyback is subject to regulatory and shareholders approval.
NMG first completed a share buyback program in September 2021. In the exercise, NMG purchased back more than 17.1 million of its ordinary shares at the Nairobi Securities Exchange(NSE) representing a performance rate of 82.25%. The media house was targeting to buy back 10% of its issued shares equivalent to 20.74 million at a price of Kes 25 per ordinary share.
NMG noted that it would issue more information on the latest buyback program “when appropriate”.
In the half year period ended 30th June 2022, NMG posted a decline both in the topline and bottom line. Profit after income tax fell to Kes247.8 Million from Kes285.2 Million. Turnover fell marginally from Kes3.72 billion to Kes3.695 billion.
READ>Meet Mombasa Billionaire Philanthropist Feuding With County
Like other Kenyan legacy media companies, it has been ramping up efforts to adapt to the fast changing media consumption landscape with increased investments in digital in recent years.
From highs of Ksh307.27 in April 2013, Nation has seen its share price fall to Ksh15.60 as of Wednesday, May 24.
The move by NMG would reduce the number of shares outstanding on the market, increasing the proportion of shares the company owns. Among reasons companies buy back their shares are to boost, return on capital, return on net worth and to enhance the long-term shareholder value.
NEXT>Inside Aden Duale’s Hotels in Nairobi, Garissa
Leave a comment