CentralNic expands share buyback by £30m

3rd Jul 2023 15:49

(Sharecast News) - Internet company CentralNic announced a £30m increase in its second share buyback programme on Monday, taking it to a maximum aggregate consideration of £34m.

The AIM-traded firm first launched the buyback programme on 15 May.

It said the decision to expand the programme reflected the board's belief that it was in the best interests of all shareholders, given the cash generative nature of the business.

The directors said the move also aligned with its renewed capital allocation policy, which was focussed on delivering greater returns to shareholders.

CentralNic said the expansion of the programme took effect immediately on Monday morning, and would continue until the total consideration paid for shares reached £34m, or a total of 28,866,000 shares - 10% percent of its issued ordinary shares - had been acquired, or until the expiration of the authority granted at the last annual general meeting in April.

"Under the buyback programme, the repurchased shares will either be cancelled or held in treasury at the company's discretion for later reissue or cancellation," CentralNic said in its statement.

"Shares held in treasury are not entitled to dividends and have no voting rights at the company's general meetings."

At 1519 BST, shares in CentralNic Group were down 0.52% at 115.2p.

Reporting by Josh White for Sharecast.com.