LONDON (Alliance News) - Cambium Global Timberland Ltd said Thursday it plans to buy back 34.8 million shares, nearly half of its capital, to implement an orderly realisation of its investments.
The company said its strategy is to return surplus capital and provide liquidity to shareholders. It is therefore seeking their approval to buyback 42% of its share capital.
The repurchased shares will then be cancelled.
"As at the latest practicable date, the company's shares were trading at a 51% discount to the published net asset value per share of 20.2 pence as at 30 April 2018," the company said.
It added: "The board believes that the proposed buyback could enable the enhancement of net asset value per share for remaining shareholders and potentially enhance the rating of the company's ordinary shares in the stock market."
The company will hold a general meeting to allow shareholders to vote on the proposed buyback on December 3.
The company added: "The directors consider the proposal to be fair and reasonable and in the best interests of the shareholders and the company as a whole.
"Accordingly, the directors unanimously recommend that the shareholders vote in favour of the proposed buyback resolution."
Cambium shares were trading up 0.2% at 9.97p on Thursday.
