GQG shares lift after cancelled share buyback
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More news: Shares in GQG Partners are up 4.3% to $2.17 in early trading after the Florida-based investment manager shelved plans for a share buyback announced last month, citing lack of certainty over the US tax treatment of the buyback.
GQG had announced last month it would purchase up to $100 million worth of its ASX-listed securities, after its shares slumped more than 20% following news that US prosecutors had charged Adani Group chair Gautam Adani over an alleged US$250 million ($390.6 million) bribe.
GQG shelves share buyback, FUM steady in November
The news: Investment manager GQG Partners has shelved plans for a share buyback announced last month in the wake of a hit to the value of its investments in India’s Adani Group.
The numbers: The Florida-based firm on Monday said there is lack of certainty over the US tax treatment of the buyback of its ASX-listed shares, which could require withholding of up to 30% of proceeds for participating shareholders. As a result, it will cancel the buyback plans.
Separately, the investment manager reported funds under management of USD159.5 billion ($249.5 billion) at the end of November, up USD100 million, with gains in its US equity and global equity funds offset by outflows in international equity and emerging market equity funds.
The context: GQG said executive chair Rajiv Jain intends to make further purchases of shares in the company, subject to blackout, valuations and other considerations.
Last month, GQG announced it would purchase up to $100 million worth of its ASX-listed securities to support their share price which slumped more than 20% in the previous session. Investors sold out following news that US prosecutors had charged Adani Group chair Gautam Adani over an alleged USD250 million bribe.
GQG became one of the biggest investors in Adani group companies in March last year, but said more than 90% of its clients’ assets were invested in issuers unrelated to the Adani Group.
The sources: ASX announcement, ASX announcement
