Fleet management solutions provider Digicore is to repurchase up to 40% of its shares.
The group is offering shareholders 60c a share, which it says represents a premium of 30.5% to the weighted average share price of 46c for the 30 trading days to 20 January, the day before it published a related cautionary notice.
The Digicore share price has increased significantly since the cautionary notice was published.
The share closed at 47c on 19 January, rising to 50c the following day. On Friday the share closed at 60c, up 7c from Thursday`s close of 53c. The lowest close since the cautionary notice was 52c on 25 February.
Digicore says part of the rationale for the repurchase is to allow the group to deploy a portion of its cash resources "in an appropriate manner". The effect should enhance its earnings and headline earnings per share and increase the return on shareholders` equity.
The proposal is subject to the approval of shareholders, the Registrar of Companies and the JSE.
The group says it intends using available cash resources to fund the share repurchase and the board has satisfied itself as to the liquidity and solvency of Digicore for the year after the implementation of the buyback.
Relevant details and dates are to be published as soon as a circular is ready to be sent to shareholders, it says.
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