Reunert plans to return R480 million in surplus cash to its shareholders through a pro rata acquisition of 10% of its issued shares at R25 a share.
CEO Gerrit Pretorius says the group considered various options but decided this was the fairest and most efficient way of returning surplus cash.
The group has a cash pile of more than R700 million.
"After the buyback all shareholders will own the same percentage of Reunert as before. However, the buyback will enhance earnings per share as a result of the reduced number of shares," he says.
"Over the past five years we have returned R1.5 billion to our shareholders in the form of dividends or special dividends. We see this buyback proposal as another way of returning value to our shareholders and in the best interest of the company."
The group says the proposal will have to be approved by shareholders and sanctioned by the court.
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