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SeedCo shareholders meet over share buyback scheme

Seed Co’s AGM is scheduled for September 13, next month.

SEED producer, SeedCo Limited, shareholders will meet to discuss and renew its share buyback mandate at its next annual general meeting, it has been revealed.

A share buyback scheme is a corporate action where a company buys back its own shares from the existing shareholders, usually at a premium to the market price.

This reduces the number of shares available in the market, which can increase the value of the remaining shares and improve financial metrics like earnings per share.

Companies might initiate buybacks to return capital to shareholders, signal confidence in the company’s future prospects, or use excess cash.

Seed Co’s AGM is scheduled for September 13, next month.

“In terms of this share buyback renewal resolution, the directors are seeking authority to allow use of the company’s available cash resources to purchase its own shares in the market in terms of the law and the regulations of the ZSE (Zimbabwe Stock Exchange),” Seed Co said in a statement.

“The directors will only exercise the authority if they believe that to do so would be in the best interests of shareholders generally.

“In exercising this authority, the Directors will duly consider following such repurchase, the ability of the company to pay its debts in the ordinary course of business for a period of 12 months from the date of the notice of this AGM.

“The maintenance of an excess of assets over liabilities, and for the company and group, the adequacy of ordinary capital and reserves as well as working capital for a period of 12 months from the date of the notice of this AGM.”

The share buyback scheme will be determined by the directors from time.

Seed Co has approximately 249 373 670 shares currently listed on the ZSE with a market capitalisation worth US$80 million.

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