Listed electronics company Reunert says it has spent R372.5 million to buy back 5.9 million shares, which should improve bottom-line earnings per share in the next reporting period.
In an announcement released yesterday, Reunert says the transactions took place between 20 August and 7 December and the purchases were paid for from cash resources. The average price paid per share was R62.93 and this amount included the cost of the transaction.
Reunert says the share buybacks will bolster headline and earnings per share by about 1.8% as less dividends will be paid due to the lower amount of shares held by shareholders. The figure is based on its results for the year to September. It will keep the stock in treasury.
Reunert's shares closed at R65 yesterday, close to the 52-week high of R65.50, which the stock reached on Monday. The share price's 52-week low is R54.30, a level the share price dropped to on 25 May.
During the recent results announcement, CEO Nick Wentzel said the company had cash reserves of R1.8 billion. Wentzel said Reunert was in the process of returning cash to shareholders through share buybacks and dividends.
The company spent R126 million buying back 2.1 million shares in the year to September. According to authority granted to the company during a February shareholders' meeting, Reunert can still buy back 33.6 million shares.
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