JSE- and BSX-listed Gemfields plans to seek shareholder approval to increase the number of shares the company may buy back during the rest of the year.
The company on September 27 completed a share buyback programme, buying about 143-million shares on-market for an average price of R1.50 apiece.
The buyback was implemented after shareholders approved the share buyback initiative but capped the number of shares that may be bought back during the calendar year at 143-million, or 10%, of the company’s shares in issue.
Gemfields on Monday said the company’s share price had softened to about R1.40 apiece on October 18.
It therefore wants the opportunity to buy shares at a discount to intrinsic value.
The company would fund future share purchases with funds remaining in its distribution pool, which was $10.28-million as at September 30.