Shareholder Value Set to Increase Amid GK’s Share Buy-Back Plan

• Following the announcement more than 6 months ago, GraceKennedy has launched the share buyback plan where as much as one per cent of its shares over a period of one year will be bought back.
• The proportion amounts to about 9.9Mn units, which at current price are valued at around $700Mn.
• GraceKennedy, which has more than 990Mn outstanding shares said the transaction will be conducted on the open market through its stockbrokers in Jamaica as well as Trinidad & Tobago. The programme will be funded from its cash resources.
• Other companies that have recently embarked on share buybacks include JMMB Group Limited, Sygnus Investments Limited and First Rock Real Estates Investment.
• The rationale for this share buyback plan is centred on the fact that management believes that the company is trading below its economic value, and the share buyback will help unlock additional shareholder value.

(Source:  RJR News)