Retailer to cough up $27 million in bid to recapture sharesOn the back of continued solid earnings growth and a strong balance sheet, JB Hi-Fi plans to buy-back up to 1,438,091 ordinary shares, or approximately 1.4% of issued shares.
The retailer will pay up to $27.2 million cash for the transaction based on yesterday’s closing share price.
The on market buyback, announced today, will neutralise the impact of shares issued in FY14.
The move is part of a commitment to managing the Company’s capital position, and will consider further capital management initiatives in the future, JB said in a statement.
JB Hi-Fi’s growth remains on the up – like for like sales rose 3% for the three months to March, according to the company’s latest Macquarie investor presentation.
The yellow retailer’s new Home appliances store sales grew 12% to March, a category cited as a major $4.6 bn opportunity.
The buyback transaction will be completed by June.
JB’s share price currently stands at $19.2 – up 1.43% today.
