Anglo Pacific Group PLC (“Anglo Pacific”, the “Company” or the “Group”) (LSE: APF, TSX: APY), is pleased to announce the initiation of a share buyback programme to purchase up to £5 million of the Company’s Ordinary Shares (“the Programme”).
The Anglo Pacific Board believes that at the current price the Company’s shares offer significant value given the implied discount to its underlying net asset value and other valuation metrics. The Company has, therefore, taken the decision to implement a share buyback programme, in order to return value to shareholders in a manner which is accretive to our key performance indicators. The share buyback programme is also being undertaken in a way that does not jeopardise our ability to finance future royalty additions, which remains our core focus.
Julian Treger, Chief Executive Officer of the Company, commented:
“Today’s announcement reflects our continued confidence in the underlying value and prospects of the Company, and adds to the significant on-market share purchases made by members of our Board over the past twelve months. The current share price offers, in our view, an attractive yield in a market where real interest rates are negative and widescale dividend cuts have been implemented.
This buyback is largely being financed from the partial disposal of the Company’s non-core equity holdings and so does not impact materially on our firepower for completing new royalty transactions. We remain firmly in growth mode and expect to announce further progress on this front in the coming months.”
To facilitate the Programme, Anglo Pacific has today entered into an engagement with Peel Hunt LLP under which it has issued a non-discretionary irrevocable instruction to Peel Hunt LLP to repurchase, on its behalf and within certain pre-set parameters, ordinary shares in the Company to be held in treasury. The Programme will commence today, 25 September 2020, and end no later than 25 November 2020. Purchases may continue during any closed periods of the Company during this period.
Purchases pursuant to the Programme will be carried out in accordance with the Company’s existing general authority to repurchase Ordinary Shares (at the AGM in 2020, shareholders gave the Company authority to purchase a maximum of 18,147,039 ordinary shares) and the provisions of the Market Abuse Regulation 596/2014/EU.
The purchases will take place on the London Stock Exchange only and not on the Toronto Stock Exchange. Details of any purchases made under the Programme will be provided via RNS announcements and published on the Company’s website.
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