The business informed the Pakistan Stock Exchange on Thursday that Maple Leaf Cement Factory Ltd (PSX: MLCF) would repurchase 100 million of its own shares between October 27, 2023, and April 15, 2024, at the price currently in effect on the stock exchange.
The program is scheduled to begin on October 27, 2023, and end on April 15, 2024, according to the stock filing.
The company’s distributable profits will be used to pay for the acquisition, demonstrating the strength of its financial position. As a result of the lowered capital, equity would be combined, improving earnings per share, future dividends, and the break-up value of the company’s shares once stock is acquired. It will also provide members the chance to leave if they want to sell their investments at a fair price.
According to the filing, “the acquisition will have a favorable impact on the Company’s financial position as it will enhance EPS, future dividends, and the break-up value of the Company’s share.”
MLCF last year showed a strategic approach to maximizing shareholder value by successfully completing a 25 million share buyback at Rs. 26.77 per share. With a current market capitalization of Rs. 30.99 billion, MLCF’s latest decision to buy back 100 million shares at the current market price of Rs. 2.9 billion demonstrates a strong trust in the company’s fundamental value.
MLCF finds it particularly compelling to repurchase its own shares, given they are currently valued far below the replacement value of the firm.