Nuplex to halt share buyback in lead-up to board meetings
Earlier this year Nuplex decided to buy back 5% of its shares on issue after a series of asset sales helped reduce the firm's debt and strengthen the balance sheet.
Nuplex Industries [NZX: NPX], the specialty chemicals maker, has decided to suspend its share buyback scheme in the lead-up to board meetings in another effort to ensure it doesn't unduly influence the share price.
The Auckland-based company adopted a new procedure where it will "cease the buyback once board papers for upcoming board meetings have been distributed to directors, and until the conclusion of the board meeting," it said in a statement. For this month's board meeting, that means the scheme was suspended from June 19 and won't resume until June 30, which coincides with the testing of executive long-term incentives.
Earlier this year Nuplex decided to buy back 5 percent of its shares on issue after a series of asset sales helped reduce the firm's debt and strengthen the balance sheet.
Among the conditions of the buyback, Nuplex will only buy shares through the NZX order matching system, won't buy more than a quarter of the trading volume in a five-day period, won't make the opening transaction or trade in the final 15 minutes of a session, and won't pay more than 5 percent above the average volume weighted price in a five-day period.
Nuplex shares were unchanged at $4.20 today, and have gained 41 percent this year. The stock is rated an average 'buy' based on six analyst recommendations compiled by Reuters, with a median target price of $4.03.
(BusinessDesk)
Paul McBeth
Tue, 23 Jun 2015
Tue, 23 Jun 2015
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Nuplex to halt share buyback in lead-up to board meetings
48870