Cargills and CT Holdings go for share buyback

Saturday, 25 July 2020 00:20 -     - {{hitsCtrl.values.hits}}

Cargills (Ceylon) PLC and CT Holdings PLC have announced moves to re-purchase shares of the respective companies on a pro-rata basis up to a maximum of 5% within one year. 

The companies said the resolution to this effect was passed by the respective Boards of Directors on Thursday, subject to shareholder and regulatory approval. 

"The repurchase of shares will be executed solely at the discretion of the Boards of Directors at an appropriate time within the mentioned timeframe at a share price that is fair and reasonable," the companies said.

The justification for the move is that the Boards are of the view that the current share price does not reflect the value of the companies and growth prospects of underlying businesses, and therefore presents an opportunity for the companies to repurchase their own shares. 

Cargills last traded at Rs. 182 whilst CT Holdings closed the week at Rs. 143.

They said that whilst the Boards of Directors view the current post-COVID environment and share price as being conducive to effect the repurchase, the continued recovery of business in Q1 and Q2 of FY21 would be considered prior to proceeding with the repurchase.

 

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.

COMMENTS

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.