Ann: Announcement of buy-back - Appendix 3C , page-4

All they have to do is sell off a few of the shares they acquired, at a lower price to enable the 5% max above market price to be a moving average downwards.

A stock exchange listed company may buy back its own shares (i.e., ordinary fullypaid
stock exchange quoted shares) in a number of ways, the most simplified being through an “on-market buy-back”.
Generally such a facility would be limited to 10% of total [voting] shares outstanding within a 12 month period – the “10/12 limit”, see ss257B(4) & (5) of the Corporations Act – otherwise shareholder approval is required (s257C).
To commence an on-market buy-back at least 14 days’ prior notice must be lodged with ASIC (s257F) using Form 281 “Notice of Intention to Carry Out a Share Buyback” if under 10%, and Form 280 “Notification of Share Buy-back Details” if over 10%.
At the same time an Appendix 3C “Announcement of Buy-back” (which actually covers any type of buy-back) must be lodged with the ASX, specifying:
· Type of buy-back
· Description of relevant share class and number of shares on issue
· Details of the buy-back offer, including:
- maximum number of shares to be bought back
- offer time period (or a statement that it is to be for an unlimited duration)
- stock broker appointed, if applicable
· Reasons for the buy-back and any material information.
A common reason for undertaking a share buy-back is where a company has surplus cash and the directors consider investment in the company’s own shares represents
a better business opportunity than most alternatives available at the time.