Tuesday, 25 November 2014

GRACEKENNEDY ANNOUNCES DECISION TO EXTEND PROGRAMME FOR BUY BACK OF SHARES


KINGSTON, JAMAICA, November 18, 2014   





The GraceKennedy Board of Directors has approved the extension of the share repurchase programme to December 31, 2014.

The share repurchase programme which was initially approved by the Board in February 2013 and which commenced on October 17, 2013 was for the purchase of up to a maximum of 2.5% of the shares of the Company in issue from time to time over a period of one year to October 17, 2014. Under this programme the Company has so far repurchased a total of 3,847,550 out of the maximum of 8,382,965 units.

GraceKennedy has further announced that there is no change in the administration of the programme and the repurchase of the shares will continue to be conducted on the open market through the Company’s stockbrokers in Jamaica and Trinidad & Tobago. The Company’s cash flows will be the source of funds for the repurchase of shares. 

As before, the Company will also not be setting a fixed price for the share repurchase, and the price for the acquisition of the shares will be the market price at the times of the repurchase. The Company continues to reserve the right to decline any offer above the ceiling that the Company 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, GraceKennedy will advise its stockholders of the number of shares purchased, names of stockholders from whom they were purchased and price paid.

Group CEO Don Wehby indicated that the Company continues to be of the view that its share price is below its true value and an opportunity exists to enhance shareholder value.  The share repurchase will serve to utilize excess liquidity in the Company and raise earnings per share.   He further stated that “The GraceKennedy Board believes that investing in our own company is an effective use of capital as we see this as a good investment for long term returns.”


Regards,

Simone Clarke-Cooper

Group Chief Communication Manager
GraceKennedy Ltd
73 Harbour Street
Kingston,
Jamaica.


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