Published: 12 November 2013

Zimbabwe Stock Exchange listed grain processor and miller National Foods Holdings Limited shareholders have approved the group's plan to buy back at least 10 percent of its issued ordinary shares.

The scheme was approved on condition that the maximum price at which the shares would be bought would be the weighted average of the market price at which the ordinary shares trade on the Zimbabwe Stock Exchange five days immediately preceding the day of purchase of such shares.

Speaking at the company's Annual General Meeting in Harare yesterday, Natfoods chairman Mr Todd Moyo said he hoped the company would be able to buy back more shares this year.

"Last year, the scheme was approved but failed to buy back the required 10 percent, but we hope this year we will be able to buy more shares as they come on the market. We will keep doing share buybacks until we get the required amount of shares," he said.

Since 2009 most companies in Zimbabwe including CFI Holdings, Delta Corporation, Nicoz-Diamond and TA Holdings have been embarking on share buyback programmes in moves aimed at retaining shareholder value.

Share repurchases are an alternative to dividends. When a company repurchases its own shares, it reduces the number of shares held by the public.
- bh24

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