Datatec spends R300m on share buybacks
Share buybacks are a major theme in global equity markets, particularly the US
Datatec has spent another R300m on buying back its own shares in recent months, says the information and communications technology group, which has a market capitalisation of R6.6bn. Stock buybacks, which sometimes signal a lack of new investment opportunities for the company doing them, are used to consolidate ownership, support the share price and boost financial ratios including earnings per share. Datatec, which raised $672m by selling certain businesses in its 2018 financial year, has said its share repurchase programme is aimed at returning surplus cash to shareholders. The company said on Tuesday it had bought back 5% of its shares since its annual general meeting on September 20 2018, at a total cost of about R300m. The shares would be cancelled and delisted. In the seven months prior to its annual meeting, the company bought back 2.1% of its shares at a cost of $8.1m. Datatec, headed by Jens Montanana, also said shareholders had approved further buybacks. Since the company’...
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