Centum Shareholders to Vote on Share Repurchase Plan

Centum Investment Company Plc shareholders will vote on the company’s planned share buyback plan.

The voting will take place during an Extraordinary General Meeting (EGM) scheduled for February 3 via electronic means.

The share repurchase is intended to provide liquidity to dual-listed firm owners while also rewarding long-term shareholders whose proportionate holding will increase as a result of the share repurchase.

“The buyback plan offers investors with a long-term view of the centum stock to benefit from potential improvement in future earnings and capital gains,” said the Centum Group CEO James Mworia.

According to the Capital Markets Authority (CMA) Guidelines, the company may buy back up to 10% of the issued and paid-up share capital of the company for a maximum price of Sh9.03 per share and a minimum offer price of Sh0.50 per share.

Centum has been given a deadline of 18 months by the capital markets regulator to complete the share buyback.

Centum has been excused from the requirement that it purchase no more than 25% of the daily average trading volume for the four weeks preceding the date of purchase set forth in the trading guidelines.

In comparison to Net Asset Value per Share, the Company’s shares are currently significantly undervalued. Its stock price, which closed Thursday’s trading at Sh8.60, is down 44% year to date.

With a cross-listing on the Uganda Securities Exchange, Centum is principally listed on the Nairobi Securities Exchange (NSE).

“The share buyback is also expected to provide liquidity to shareholders who may not have been able to trade due to the current depressed market conditions,” added Mworia.

For the Buyback Program, Centum has engaged Faida Investment Bank to serve as consultants.

By giving those investors the chance to cash out while rewarding those who want to stay as shareholders, the share repurchase is anticipated to help the firm align shareholding with its long-term value aspirations.