Imperial Logistics said on Friday it has bought back just more than 1% of its shares so far in September, worth R91m, and still has authority to buy back a further 3.73%.
Shareholders of the group, which has a market capitalisation of R7.1bn, gave permission for the group to buy back about 10-million of its shares in October 2019, then representing 5% of issued share capital.
The group said it proceeded with the share buybacks, which are often undertaken when management believes a group’s shares are undervalued, amid a healthy cash position.
Imperial had reported that net debt, excluding leases, surged 47% to R8.4bn in its year to end-June — R1.3bn of this due to a weakening rand. Since then, the group has received R3.44bn in proceeds from the sale of its European shipping business.
Imperial at the time had said it was pleased by the amount of new contracts it had won in spite of pressure from Covid-19.