The financial services group has extended its buyback programme by R500m
Old Mutual said on Friday that it plans to spend up to R2.5bn on buying back its own shares, which the market currently undervalues.“The Old Mutual board believes that Old Mutual is trading at a discount to its intrinsic value and is of the view that a share repurchase programme will deliver longer-term incremental value to shareholders,” the group said on Friday.
“The management team remains committed to following a disciplined trading approach under the share repurchase programme and will only repurchase shares to the extent that market conditions are favourable.” The company said the programme will reduce its share capital as the repurchased shares will be canceled as issued shares.
The group, headed by Peter Moyo, had cash and cash equivalents of R32.3bn at the end of December 2018, from R30.8bn a year before, it said in March. At the time, Old Mutual said it might return more capital to shareholders in the future as it expected further cash inflows from the sale of its Latin American operations, as well as more inter-company dividends.
In the year ended December 2018, the group’s adjusted headline earnings fell 11% to R11.5bn, partly due to lower investment income in SA as a result of weaker equity markets.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Free State man handed life sentence for rape of 9-year-old girlThe Virginia Regional Court in Meloding, Free State has handed down a life imprisonment sentence to 25-year-old Teboho Modikeng for the brutal rape of a 9-year-old girl, Free State police have said.
Read more »
Intoxicated 12-year-old girl's joyride ends in arrest | IOL NewsAn intoxicated 12-year-old girl went on a joyride in the family car with three other children, forcing police to pursue them on a New Mexico highway.
Read more »
BUSINESS MAVERICK: An old curse and addiction are at play in new debates around ivoryOn Wednesday, South Africans will decide the political fate of ‘The Buffalo’. In Botswana, regional governments this week are discussing the political fate of the elephant, including bids to sell ivory. Botswana, Zimbabwe, Zambia and Namibia have close to two-thirds of Africa’s elephants roaming within their borders, triggering human-wildlife conflict as rural subsistence farmers and swelling pachyderm populations collide. Emotions aside, it is useful to frame the issue in a wide historical context. Ivory was Africa’s original ‘resource curse’ and recent poaching trends have followed a disturbing historical pattern.
Read more »
Mshoza on showing up for Gigi Lamayne: 'The old ones must support the young ones''You can't win if you haven't tried. Women must go out and not be scared. Who knew that someday I would be the Queen of Kwaito? You need to go for it and persist.'
Read more »
‘I will continue to vote as long as I live’ – 89-year-old KZN grannyThe senior voter said she started voting 25 years ago, in 1994, when South Africa experienced its first democratic elections.
Read more »
WATCH | Elections 2019 through the eyes of voters, young and oldSAElections19 WATCH | Phineas Sakara was born in 1902 and said he would vote 'until I die'.
Read more »
Demi-Leigh Nel-Peters mourns death of 13-year-old sisterDemi-Leigh Nel-Peters paid tribute to her younger sister Franje in an emotional Instagram post.
Read more »
Thai king crowned in day of pomp and centuries-old splendourTo the boom of cannons, pipes and chants, King Maha Vajiralongkorn was crowned in a ceremony governed by centuries-old rituals.
Read more »
Egypt uncovers Old Kingdom cemeteryThe site on the southeastern side of Giza plateau contains tombs and burial shafts from various periods.
Read more »