The GraceKennedy Group says it has received the requisite regulatory approvals for its share buy-back programme, which was announced on March 1.
Under the buy-back programme, the regional conglomerate will proceed with repurchasing up to one per cent of the GraceKennedy shares in issue, over a period of up to one year. The repurchase of shares will be conducted on the open market through stockbrokers in Jamaica and Trinidad & Tobago, using the company’s cash reserves.
Group CEO of GraceKennedy Don Wehby commented that the share buy-back is being implemented because the company’s share price is considered to be trading below its economic value.
“Our 2030 vision sees GraceKennedy becoming the number one Caribbean brand in the world by building on our core pillars of Foods and Financial Services, to provide strong returns for our shareholders and improve the quality of life of those we serve,” Wehby said.
“By 2030 we aim to generate US$2.1 billion in revenue and US$250 million in profit annually. To achieve this vision, we have established several strategic objectives – we will earn 70 per cent of our revenue and profit outside of Jamaica; list on an international stock exchange; grow our food business in major international markets; and expand the footprint of our financial services business in the Caribbean.
“We are confident in these long-term strategic objectives and believe that investing in our own company is the best use of capital and a good investment for long term returns. The share buy-back will support us in achieving our 2030 vision, as it provides an opportunity to enhance shareholder value by helping to raise earnings per share,” he added.
GraceKennedy has indicated that it will not be setting a fixed price for the share repurchase, and that the price for the acquisition of the shares will be the market price at the time of repurchase.
The company is also reserving the right to decline any offer above the price ceiling that it may set from time to time, at its sole discretion.