VGI Partners Global Investments Initiates On-Market Buy-Back Program
VGI PARTNERS GLOBAL INVESTMENTS LIMITED (VG1) Share Update October 2024 Wednesday 23rd
VGI Partners Global Investments Announces On-Market Buy-Back
VGI Partners Global Investments Limited (ASX: VG1) has announced a new on-market buy-back program, aiming to repurchase a substantial portion of its shares over the coming year.
Instant Summary:
- VGI Partners to buy back up to 67,382,076 shares.
- The buy-back will occur on-market and is set to start on 26 November 2024.
- The buy-back program will conclude by 24 November 2025.
- Shareholder approval is required, with a meeting scheduled for 25 November 2024.
Buy-Back Details
VGI Partners Global Investments Limited has announced its intention to conduct an on-market buy-back of its ordinary fully paid shares, under the ASX security code VG1. The company plans to repurchase up to 67,382,076 shares, which represents a significant portion of the 269,446,959 shares currently on issue.
The buy-back will be conducted on-market, providing the company with flexibility in its execution. The buy-back is scheduled to commence on 26 November 2024 and will run until 24 November 2025, subject to the company's discretion and market conditions.
Shareholder Approval
The buy-back is contingent upon shareholder approval, which is a standard requirement for such corporate actions. VGI Partners has scheduled a shareholder meeting for 25 November 2024, where an ordinary resolution will be put forward to approve the buy-back.
The buy-back will be conducted in Australian Dollars (AUD), although the exact price per share to be paid has not been disclosed at this time. The company has yet to announce the broker or brokers who will facilitate the buy-back on its behalf.
The announcement of a buy-back program often signals to the market that a company believes its shares are undervalued. This can lead to a positive reaction from investors, as buy-backs can reduce the number of shares outstanding, potentially increasing earnings per share and the value of remaining shares.
For VGI Partners, this buy-back could enhance shareholder value and provide support to the share price, especially if the market perceives the buy-back as a vote of confidence from the company's management.
Investor Reaction:
Analysts are likely to view this buy-back announcement positively, as it suggests that VGI Partners is committed to returning value to shareholders. However, the success of the buy-back will depend on market conditions and the company's ability to execute the program effectively.
Conclusion:
Investors should keep an eye on the upcoming shareholder meeting on 25 November 2024, as approval is necessary for the buy-back to proceed. Monitoring the execution of the buy-back and its impact on share price will be crucial for evaluating the long-term benefits of this initiative.