African Energy Shareholders Give Nod To BSE Exit

Botswana Stock Exchange listed African Energy Resources Ltd says it has has been granted approval by  shareholders to undertake an onmarket share buyback 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. 

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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 buyback  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 buyback  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 onmarket share purchases,” the company said in a Botswana Stock Exchange filing.

The appendix 3C in relation to the onmarket buyback 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. 

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