Fletcher Building Ltd launched its share buyback yesterday with the acquisition of just over 300,000 shares.
It bought 134,123 shares in New Zealand at an average $4.7578 and 170,359 in Australia at an average $A4.4823.
The reduction by 304,482 shares amounted to 0.0357% of the company’s 853 million shares.
The buyback programme, for up to 12 months, is for up to 70 million shares & a maximum aggregate $300 million.
Fletcher Building’s share price dropped 40c to $4.32 in the week to 28 August, but recovered 50c to hit $4.82 – 6c more than the buyback price – yesterday.
Chief executive Ross Taylor said when he announced the buyback in June: “Fletcher Building is continuously assessing its balance sheet position & investment opportunities to drive shareholder returns.
“Following the completion of the Formica sale for $1.2 billion, we have considered a few key factors for allocation of the sale proceeds. The company is well below its target leverage range, and better than previously forecast. We have around $600 million of debt that we will repay over the next 12 months. And we have around $250 million of cash outflows to complete the legacy B+I (building & interiors division) projects, and we remain confident that these projects will be completed within the current provisions.
“Based on these factors, we are in a position to distribute up to $300 million to shareholders, with the most effective method being an onmarket share buyback.”
Attribution: Company release.