Simbisa considering shares buy back

QUICK service restaurants (QSR) group, Simbisa Brands Limited shareholders, are set to consider authorising the company to purchase up to 10 percent of its issued ordinary share capital in any one financial year.

That would be at the upcoming Annual General Meeting scheduled for 22 November.

During the AGM, a special resolution on share buyback will be tabled.

A buyback occurs when the issuing company pays shareholders the market value per share and re-absorbs that portion of its ownership that was previously distributed among public and private investors.

Share buybacks are signal to the market that the board thinks the company is strong.

When a company is buying back shares, it sends a message to the market that it has confidence in its own operations.

Reads part of the agenda: “To consider and, if deemed fit, to pass with or without modifications, the following special resolution:

“That the company authorises in advance, in terms of section 129 of the Companies and Other Business Entities Act and the Zimbabwe Stock Exchange (ZSE) listing requirements, the purchase by the company of its own shares upon such terms and conditions and in such amounts as the directors of the company may from time to time determine and such authority hereby specifies that:

(1) The authority in terms of this resolution shall expire on the date of the company’s next Annual General Meeting; and

(ii) Acquisitions shall be of ordinary shares which, in the aggregate in any one financial year, shall not exceed 10 percent of the company’s issued ordinary share capital.”

The price at which such ordinary shares may be acquired will be not more than five percent above and five percent below the weighted average of the market price as determined over the five business days immediately preceding the date of purchase of such ordinary shares by the company.

Shareholders will also discuss and approve various resolutions, including the adoption of the company’s audited financial statements for the twelve months ended June 30, 2024.

The agenda includes ratification of Nabil Mankarious’s appointment as an independent non-executive director (NED), re-election of directors Addington Chinake and Jacqueline Hussein, approval of directors’ fees and to approve borrowings for the year ended 30 June 2024.-ebsinesssweekl