Ann: FY25 Half Year Results & On-Market Share Buy Back, page-29

@MirCat --for your edification

A company share buyback, also known as a share repurchase, occurs when a company buys back its own stock from the market, reducing the number of outstanding shares and potentially boosting the share price and earnings per share.

Here's a more detailed explanation:

• What it is:

  A company uses its cash to purchase its own shares from the open market or directly from shareholders.
• Why companies do it:

  • Return Capital to Shareholders: Buybacks are a way for companies to return cash to shareholders, similar to dividends.
  • Increase Share Price: By reducing the number of outstanding shares, the value of each remaining share can increase.
  • Improve Financial Statements: Buybacks can improve key financial metrics like earnings per share (EPS).
  • Signal Confidence: Companies may buy back shares when they believe their stock is undervalued and are confident about their future prospects.
• Types of Buybacks:

  • On-Market Buybacks: The company purchases shares on the open market through **promotion blocked**.
  • Off-Market Buybacks: The company directly offers to repurchase shares from shareholders.
• Impact on Shareholders:

  • Increased Ownership: Remaining shareholders have a larger percentage of ownership in the company.
  • Potential Tax Implications: Share buybacks can have tax implications for shareholders, depending on the type of buyback and their individual circumstances.

Really
DYOR