Durrant Pate/Contributor

Regional financial service group, JMMB Group Limited, has commenced its share buy-back programme, which was previously announced over a year ago.

In this shares buy-back programme, JMMB Group intends to purchase up to 10 million shares on the open market from time to time utilising its cash resources. This means that JMMB is prepared to pay out over $282 million for the shares at current market value of $J28.27 per share.

The shares buy-back initiative comes as the stock price is currently trading below the market and financial sector’s average price to earnings (PE) and price to book ratio. The rational for the buy-back programme is to unlock value for the company’s shareholders by purchasing shares at a price below or equal to the company’s intrinsic value.

This is consistent with the strategy previously disclosed in JMMB Group’s last annual general meeting (AGM) held on September 22, 2022.  In accordance with Rule 413 of the Jamaica Stock Exchange (JSE), regarding share repurchases, notification will be made whenever the shares are repurchased.

A share buy-back involves a company buying back shares from the market and cancelling them after the transaction. This reduces the number of overall shares outstanding and makes the remaining shares more valuable as fewer are in issuance.