Botswana Stock Exchange listed African Energy Resources Ltd says it has has been granted approval by shareholders to undertake an on‐market share buy‐back of up to 4% of the company’s total share capital over the next twelve months.
This initiative is undertaken as part of its ongoing capital management strategy, taking note of the low market capitalisation (share price) when compared to the net tangible asset backing of the company and, in particular, the current cash backing of $4.3 million.
Shareholders have approved the voluntary delisting of African Energy shares from Botswana Stock Exchange and approximately two million shares currently held on the Botswana register will be transferred to the ASX register. The Buyback may be utilised to support the market during this period.
“Pursuant to ASX Listing Rules, the prices paid for any shares purchased under the share buy‐back will be no more than 5% above the volume weighted average price of African Energy shares over the five prior trading days. The total number of shares to be purchased by African Energy under the buy‐back will depend on market conditions and volumes, but the board has resolved to limit purchases to 25,000,000 shares at a maximum share price of 7 cents and incur no more than A$500,000 for on‐market share purchases,” the company said in a Botswana Stock Exchange filing.
The appendix 3C in relation to the on‐market buy‐back is attached to this announcement. The buy‐ back facility will be open for 12 months from 11 December 2017, 14 days after the issue of this notice.