PRL Global Limited Commences $5 Million On-Market Share Buyback
PRG (PRG) Share Update September 2024 Wednesday 18th
PRL Global Limited Announces On-Market Share Buyback
PRL Global Limited (ASX: PRG) has announced the commencement of an on-market share buyback worth up to $5 million, following the sale of its subsidiary Cheekah-Kemayan Plantations Sdn Bhd.
Instant Summary:
- PRL Global Limited starts a $5 million on-market share buyback.
- The buyback follows the sale of Cheekah-Kemayan Plantations Sdn Bhd for 155 million Malaysian Ringit (~A$51 million).
- The buyback will be open for up to 12 months.
- Shares will be purchased at no more than 5% above the volume-weighted average market price.
Buyback Announcement
PRL Global Limited (ASX: PRG) has officially commenced an on-market share buyback program worth up to $5 million. This announcement follows the initial filing of Appendix 3C on 5 September 2024 and adheres to ASX Listing Rule 7.33. The buyback will remain open for a period of up to 12 months.
The buyback comes on the heels of PRL Global's sale of its subsidiary, Cheekah-Kemayan Plantations Sdn Bhd (CKP), for 155 million Malaysian Ringit, approximately A$51 million. This strategic move allows the company to reinvest in its own shares, potentially boosting shareholder value.
Terms and Conditions
The shares will be purchased on-market, subject to prevailing share prices and market conditions. The buyback price will not exceed 5% above the volume-weighted average market price for the securities, calculated over the last five days on which sales were recorded before the day of purchase.
Chairman David Somerville and Company Secretary Elizabeth Lee are the primary contacts for further information regarding the buyback. Investors can reach out to them via the provided contact details or visit the company's website for more information.
The initiation of a $5 million on-market share buyback is a positive signal to investors, indicating the company's confidence in its current valuation and future prospects. This move is likely to support the stock price by reducing the number of shares available in the market, thereby increasing the value of remaining shares.
Additionally, the recent sale of CKP for approximately A$51 million provides the company with substantial liquidity, which can be used for further investments or to strengthen its balance sheet. This financial maneuvering demonstrates PRL Global's strategic planning and commitment to enhancing shareholder value.
Investor Reaction:
Analysts are likely to view the buyback positively, as it often signals a company's belief that its shares are undervalued. The sale of CKP adds a layer of financial stability, making the buyback more feasible and attractive. However, market conditions and the execution of the buyback will be closely monitored by investors.
Conclusion:
Investors should keep an eye on PRL Global Limited's share buyback progress and its impact on the company's stock price. This strategic move, combined with the recent sale of CKP, positions PRL Global for potential growth and increased shareholder value. Staying informed on these developments will be crucial for making well-informed investment decisions.