Centum Funding Group CEO James Mworia. FILE PHOTO | SALATON NJAU | NMG

Centum Funding Firm Plc has opened its share buyback provide after receiving the nod of its shareholders for the share repurchase train on Friday.

The provide to purchase again 66.5 million shares by the corporate which opened on Monday is predicted to run throughout an 18-month interval to August 8 subsequent 12 months.

The share buyback was broadly supported by the corporate’s shareholders ultimately week’s extraordinary basic assembly with 98.59 p.c of votes by shareholders supporting the initiative.

Learn: Centum pays greenback loans to chop prices over a weak shilling

Centum’s administration which has put aside Sh600.8 million to finance the buyback is betting on the programme to stabilise the corporate’s share worth and market valuation.

“The share buyback is predicted to offer liquidity to shareholders who might not have been capable of commerce because of the present depressed market circumstances,” Centum’s chief govt James Mworia instructed shareholders.

“It should reward long-term shareholders whose web asset worth per share will enhance because of the discount in shares.”

The corporate has set the utmost share buy worth at Sh9.03 and the minimal at 50 cents.

Past the shareholder nod, Centum has the approval of the Capital Markets Authority to develop shares bought in this system past the 25 p.c daily-volume cap.

The exemption by the capital markets regulator is essential in permitting Centum to realize the share buyback goal inside the 18-month window as Centum’s day by day traded volumes are principally under 100,000.

The share repurchase program is open to all shareholders no matter dimension however is topic to the utmost buyback dimension.

Centum’s floating shares are anticipated to scale back to 598.9 million on the finish of the buyback train.

The board of Centum has reserved the suitable to terminate the buyback on circumstances together with when this system is now not deemed to be in the most effective curiosity of the corporate, adjustments in financial and market circumstances and the incidence of a fabric change within the agency’s monetary place.

Learn: Centum units apart Sh600m for its share purchase again plan

On Monday, in extra of 500,000 Centum shares had been traded, marking an enormous improve from the conventional volumes.

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