Lucky Cement announces second buy-back of 23.8m of its own shares

KARACHI: Following the successful completion of the first buy-back of 10.0 million shares, Lucky Cement Limited has announced yet another and its second buy-back of 23.8 million of its own shares.

This buy-back plan is subject to obtaining the necessary approval from the members of the Company. The primary objective behind this strategic move is to bolster the Company’s valuations.

By repurchasing its own shares, the Company aims to optimize its capital structure and unlock additional value for its stakeholders. This buy-back initiative showcases the Company’s proactive approach in managing its financial resources, fostering investor confidence and reinforcing its commitment to maximizing long-term shareholder value. The Company has announced to hold an Extraordinary General Meeting of its members on May 24, 2023.

“The Board of Directors of Lucky Cement Limited, in its meeting held on April 28, has approved, and decided to recommend to the members of the Company for their approval by passing of special resolutions, the purchase / buy-back of up to 23,800,000 (Twenty Three Million Eight Hundred Thousand) issued ordinary shares of the Company (constituting approximately 7.59 percent of the current issued and paid up share capital of the Company), of the face value of PKR 10/- (Pak Rupees Ten) each, by the Company in accordance with Section 88 of the Act read with the Regulations, subject to, inter alia, obtaining the requisite approval from the members of the Company”, material information sent to Pakistan Stock Exchange said.

Lucky Cement Limited is the first company to announce its second Buy-Back (Treasury Stock) at PSX.

Based on current prices it translates into Rs 10 billion Buyback, an analyst at Topline Securities said.

The purchase period shall be from June 02, 2023 to November 20, 2023, or till such date that the Buy-Back is completed, whichever is earlier.

To recall, Lucky Cement Limited completed its first Buy-Back of 10 million shares at an average price of Rs 435.6/share in March 2023.

Many companies considering low valuation is aggressively buying their own shares. So far Maple Leaf Cement (MLCF), JDW Sugar Mills (JDWS), Bank Alfalah (BAFL), Kohat Cement (KOHC), Kohinoor Textile Mills (KTML), NetSol Technologies (NETSOL), Synthetic Products (SPEL), etc have already done or announced Treasury Stocks Buy-Back.

Copyright Business Recorder, 2023