Webcentral to buy back shares after sale of domains business
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The news: Data centre provider Webcentral has flagged an on-market share buy-back using proceeds from the sale of its domains business. Webcentral may begin buying shares from 22 December.
The numbers: The company in October agreed to sell two thirds of its Webcentral and Melbourne IT domain registry, consumer hosting and email hosting business to a European group for $165 million.
Webcentral shares closed at 24 cents each on Thursday.
The context: Webcentral said the sale would likely be completed this month. The number of shares purchased in the buy-back will depend on market conditions.
The company's stock has traded much higher than its 2023 levels. In 2017 and 2018, the shares traded for more than $3 each.
What they said: "Webcentral will maintain a strong balance sheet following completion of the buy-back and the Webcentral Board will continue to assess the merits of this capital management plan as market conditions evolve, as well as to assess options to distribute any additional surplus capital," Webcentral ASX release.
The source: Webcentral
