Lucky Cement Limited (PSX: LUCK) has approved the decision to recommend a second buyback of up to 23.8 million or 7.59 percent of its issued ordinary shares, the cement maker informed the Pakistan Stock Exchange on Tuesday.
The Board of Directors in its meeting held on April 28, 2023, approved and decided to recommend the purchase/buyback of up to 23,800,000 issued ordinary shares of the Company (constituting approximately 7.59 percent of the current issued and paid-up share capital of the Company), of the face value of Rs. 10/- each.
With this development, Lucky Cement has become the first company to announce a 2nd buyback. The buyback size is estimated at a value of more than Rs. 10 billion. In the 1st buyback, which was concluded on 17 Mar 2023, the company bought 10 million shares for Rs. 4.4 billion at Rs. 436/share, according to Arif Habib Limited (AHL).
The purchase period has been set from June 2, 2023, to November 20, 2023 (both days inclusive), or till such date that the purchase is complete, whichever is earlier. According to the filing, the buyback will be made from the distributable profits of LUCK.
The company says the buyback will have a positive effect on the future financial position of Lucky Cement, including the break-up value of the Company’s shares and its Earnings per Share (EPS). “The current Buy-Back will also provide an opportunity of exit to those members who wish to liquidate their investment, fully or partially, including those who were unable to do the same during the previous buy-back,” read the filing.
The company’s BoD will meet on Wednesday, May 24, 2023, to seek members’ approval for the proposed purchase/buyback of shares.
The Share Transfer Books of the Company will remain closed from May 17, 2023, to May 24, 2023 (both days inclusive).
According to Topline Securities, many companies considering low valuation are aggressively buying their own shares. So far, Maple Leaf Cement (MLCF), JDW Sugar Mills (JDWS), Bank Alfalah (BAFL), Kohat Cement (KOHC), Kohinoor Textile Mills (KTML), NetSol Technologies (NETSOL), Synthetic Products (SPEL), etc have already done or announced buyback of Treasury Stocks.
Source: Pro Pakistani