Extreme stock market volatility in recent weeks has seen new car retail giant Eagers Automotive Limited (ASX:APE) announce its intention to buy back up to 10% of its issued share capital (up to 25,693,310 ordinary shares).
In the most recent ASX sell-off Eagers’ shares fell 11.18%, diving from $9.93 on June 8 to $8.82 on June 15 before a rebound. In the same period, the ASX All-Ordinaries index fell 7.6% before they too recovered some ground.
This buy-back strategy announcement follows the listed companies positive market guidance and trading update released on May 18.
Eagers Automotive says the buy-back reflects its board’s prudent focus on active capital management and is also testament to the company’s strong balance sheet.
The share buy-back will commence on 30 June 2022 and is expected to occur progressively within 12 months from commencement, subject to market conditions and the company’s securities trading policy.
Join the conversation