The biggest retail bank in the Country, Bank South Pacific, is looking at buying back up to fifteen million kina of its own shares.
BSP Chairman, Kostas Constaninou, announced that the board of Directors had resolved to undertake a buyback program this year, as part of the company’s capital management strategy.
The buyback program started yesterday and will continue for a period 12 months.
BSP intends to buy back shares of up to fifteen million kina; however, the shares that the company will buy from shareholders will depend on the stock market.
The buyback is expected to improve earnings for each shareholder who continues to hold BSP shares.
Shareholders who sell all of their shares into the buyback, will not be exposed to any future decline in the market price of BSP shares, will not pay brokerage to sell their shares into the buyback; and shareholders with small holdings are able to sell all of their shares so as not to be left with a small parcel of shares.
However, shareholders who sell all of their shares into the buyback will not be exposed to any future rise in the market price of BSP shares.
Under the program, shareholders are invited to sell 1000 shares of each registered holding to BSP. There is no assurance that the buyback will be successful.
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