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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