This archive report was first published on 29 September 2021.
On September 24th, 2021, Nation Media Group (NMG) concluded its share buyback program, which began on June 28th, 2021. The exercise saw the media company acquire more than 17.1 million of its ordinary shares at the Nairobi Securities Exchange (NSE), achieving a performance rate of 82.25%.
The company aimed to buy back 10% of its issued shares, equivalent to 20.74 million, at a price of KSh 25 per ordinary share. Any ordinary shares acquired through the buyback plan will be held as treasury shares.
Buyback is a corporate action where a company repurchases its shares from existing shareholders, typically at a price higher than the market price. This reduces the number of shares outstanding in the market, allowing companies to invest in themselves and potentially improve earnings per share, return on capital, and return on net worth.
As the country prepares for the 2022 polls, NMG is expected to benefit from the surge in demand for radio and TV advertising by the political class, potentially lifting its performance further. However, the company was also affected by the COVID-19 pandemic, which led to a decline in advertising spending.
READ: NMG Emerges from Losses to KSh 285.2 Million Half-Year Net Profit
