Reliance Worldwide paces ASX 200 gains on $120m buyback
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More news: Reliance Worldwide led gains on the ASX 200 in morning trade after announcing a further on-market share buyback of $120 million to return excess capital to shareholders.
Shares were up 5.5% to $3.08 at 11:45am AEDT, having slipped 34% over the last 12 months.
Reliance Worldwide announces additional share buyback of $120m
The news: Reliance Worldwide Corporation has announced a further on-market share buyback of $120 million to return excess capital to shareholders.
The context: The buyback is in addition to the previously announced on-market buy-back of around USD15.3 million ($21.88 million) on 17 February, as part of the company’s half-year distribution program, payable on 2 April.
The company said the additional buyback will be funded through a mix of cash reserves and available borrowing facilities.
What they said: “Undertaking this additional share buy-back will enable us to return excess capital to shareholders efficiently and is consistent with our previously articulated capital management strategy,” Reliance Worldwide Corporation chair Russell Chenu said.
“We expect to be comfortably within the leverage ratio target at the conclusion of the $120 million buyback,” he added.
The source: ASX
