Kingston Properties will shortly be rolling out a buy-back scheme, as it seeks to enhance shareholder value while preserving its share price from depletion.

The real estate development company says it plans to buy back up to 0.5 per cent of its outstanding shares for up to two years.

Kingston Properties’ board of directors has authorised the buy-back, which will start at the expiration of 21 days from this week’s date of notice to the Jamaica Stock Exchange (JSE) of the scheme. 

In a statement, the board noted that it sees this use of capital as an opportunity to enhance shareholder value through the periodic purchase of undervalued shares.

The repurchase of the shares will be done using Kingston Properties’ cashflows and will be conducted on the open market through the company’s stockbrokers. The directors have advised that a fixed price for the repurchase will not be set.

In the meantime, the acquisition price for the shares will be the market price at the time of the repurchase. Kingston Properties says it reserves the right to decline any offer above the ceiling that it may from time to time determine in its sole discretion.

In keeping with the requirements of the Companies Act of Jamaica within 30 days of the dates of the repurchase of shares, Kingston Properties disclosed that it will advise its shareholders of the details of the shares purchased.