Cement maker to hold share buyback
Thatta Cement Company Ltd said on Wednesday it wants to buy back up to 15 million of its shares constituting about 15 per cent of the total shareholding at the going rate on the stock market. The size of the transaction should hover around Rs215.5m at the prevailing share price of Rs14.37 apiece. The purpose of the exercise is to hold the reacquired shareholding as treasury shares, which don’t count towards the outstanding shareholding available in the open market. “The proposed buyback will have a positive effect on the future financial position of the company, including the breakup value of the company’s shares and its earnings per share. The buyback will also provide an opportunity of exit to those members who wish to liquidate their investment, fully or partially,” it said. Many listed companies have carried out share repurchase exercises in the ready market in the recent past. The total number of shares goes down once a company conducts a buyback, leading to an increase in its earnings per share as well as its break-up value — the amount that the company would be worth if it was liquidated.