E-business solutions integrator Comparex has spent almost R107.7 million buying back 3% of its issued shares, and further purchases appear to be on the cards.
Comparex shareholders granted the group`s directors a general authority in October last year to repurchase up to 20% of the issued share capital, with any repurchase being made at a price not higher than 10% above the weighted average of the market value of the shares for the preceding five business days.
"As stated in February 2001, when we announced our interim results, we believe the Comparex share is currently attractively valued," says CEO Rian du Plessis.
"At current prices, buying back Comparex shares adds value to Comparex and its shareholders," he adds.
The repurchase began on 22 February and continued on a day-to-day basis as market conditions allowed.
A wholly owned subsidiary of Comparex has bought 10 191 300 shares for R107.66 million.
"The highest price paid was R11 per ordinary share and the lowest price paid was R9.20 per share," the group says.
Du Plessis says the 10.2 million repurchased shares will be held by the Comparex subsidiary as treasury stock and will not be cancelled.
"They can therefore be sold by Comparex should there be a requirement to raise expansion capital in future."
The group says that the repurchases to date have been funded from available cash resources. This will remain the policy for future repurchases.
"We will continue to evaluate further buybacks at appropriate price levels, which when completed will be announced, bearing in mind that the JSE requires us to report each 3% acquired," says Du Plessis.
"At the same time shareholders should note that strategic acquisitions in Europe to deepen and geographically expand our e-business solutions offering are currently being pursued."
Comparex`s share was 2% or 20c down at 980c in midmorning trade on the JSE.
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