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Cape Town - South32 [JSE:S32] on Monday announced that it intends to return an additional $500m (R6.1bn) to shareholders. This is equal to 4.5% of the group’s current market capitalisation.
This capital management programme, which complements
the company’s
dividend policy, will initially take the form of an on-market share buy-back in
Australia.
South32 chairperson David Crawford said: “The combination of our operating leverage,
strong balance sheet
and simple capital management framework is designed to maximise returns and reward
shareholders as financial performance improves."
CEO Graham Kerr explained: “Our net cash balance continues to build, giving us the
financial strength and flexibility to invest in our existing operations, pursue opportunities
where we can create value and return excess capital to shareholders. This $500m
capital management programme meaningfully increases shareholder returns and
follows the recent
announcement of our $192m interim dividend.”
The timing
and number of shares purchased under the on-market share buy-back will be contingent
upon the prevailing share price and market conditions. It is not
subject to shareholder approval and will be funded from existing cash reserves.
The programme is expected to be completed over a 12-month period and
all alternatives will continue to be assessed to ensure the capital is
returned in an efficient
manner, said South32.
