Nation Media Group (NMG) revealed plans to buy back 10 per cent of its shares from its shareholders in a programme giving its shareholders a chance to cash in on their investments.
The NMG announced on Thursday that its board resolved to propose to its stockholders the buyback of 10 per cent of its issued and paid-up share capital, as outlined in the Companies Act.
The NSE-listed and largest media house in East and Central Africa earlier this year commenced on digital transformation and relaunched its foremost digital brand from nation.co.ke to nation.africa.
The Buyback Programme initiated by the media house linked to Aga Khan will be subjected to the approvals of the regulator, Capital Markets Authority (CMA) and its own shareholders.
In its notice, NMG also advised all its shareholders and investors to be cautious when dealing in the media company's shares as required of listed companies.
A share buyback programme is simply when a listed firm decides to buy back a portion of shares that had been issued to its shareholders as a way of returning funds to stakeholders.
This, in effect reduces the number of issued shares and increases the proportional rights of any single share.
“The share buy-back offers the shareholders an alternative option of taking cash thereby realising a return on their investment,” said NMG Chief Executive Officer Stephen Gitagama.
NMG declared a bonus share of one for every 10 ordinary shares held in 2020 and the share buyback programme gives shareholders a chance to cash out on their investments.