KARACHI: Maple Leaf Cement Factory Ltd (MLCF) said on Tuesday it has bought back 25 million of its own shares at spot rates in line with a special resolution that its shareholders passed on May 17.
The company’s stockowners had agreed to the buyback scheme that allowed the cement maker to buy in cash a maximum of 2.27 per cent of its total issued shares having a face value of Rs10 each at the spot price between May 26 and Aug 15.
However, the latest regulatory filing showed MLCF achieved the buyback quantum on July 5.
The company used its distributable profits accumulated over time to purchase its own shares for the purpose of cancellation. Listed companies buy back their own stocks either to cancel them altogether or hold the same as treasury stocks. The move brings down the number of outstanding shares on the open market. It improves their earnings per share as a result of the reduction in the total number of shares, according to Umair Naseer of Topline Securities.
Published in Dawn, July 6th, 2022