Sylvania Platinum Launches Share Buyback to Cover Treasury Shortfall
Sylvania Platinum announced on Monday that it intends to acquire up to 4.2 million ordinary shares under a share buyback.
The AIM-traded firm was offering to acquire the shares at a price of 41.68p each, representing the 30-day value-weighted average price as at the close on 20 September.
It said it had instructed Liberum Capital to acquire up to three million shares and had offered to buy back up to 1.2 million shares from company employees, excluding directors.
The program was set to run from Monday until 27 September, with the maximum number of shares that could be purchased standing at 4.2 million, or around 1.45% of its issued share capital.
Sylvania said the share buyback would be funded from its current cash balances, and added that the acquired shares would be used to fulfill the current shortfall in shares held in treasury to cover the bonus share awards and options of 4.2 million shares, which were set to vest over the next five years.
“There is no guarantee that the share buyback will be implemented in full or that any repurchases will be made,” the board said in its statement.