ZIMRE Holdings embarks on a share buyback scheme (09-06-07)

ZIMRE Holdings has embarked on a share buyback schemes aimed at unlocking shareholder value.
Zimre announced today (Friday) it would begin repurchasing shares under a scheme that was authorised by its shareholders earlier this week. Zimre chief executive Albert Nduna said the share buyback scheme

s were not unusual and were generally designed as a mechanism to protect a company’s share price, if and when necessary and thus enhance shareholder value.
Companies may want to buy back their shares for a number of reasons such as to reduce administrative costs in a listed company by buying out holders of small parcels of shares or to reduce the number of ordinary shares on issue, resulting in higher earnings per share, ultimately pushing a counter’s price upwards.

Post published in: Economy

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