Calgro M3’s Strategic Share Buyback: Bolstering Finances and Confidence

  • Share Repurchase Success: Calgro M3 Holdings bought back 3.02% of its shares, boosting financial stability and shareholder value.
  • Remaining Repurchase Authority: The company retains authority to acquire 13.68% more shares, showcasing confidence in future prospects.
  • Financial Outlook and Board's Confidence: Calgro M3's board believes the company is well-positioned for 12 months, with ample resources for ordinary operations.
By Lethabo Ntsoane

Calgro M3 Holdings Limited has successfully completed a general repurchase of its ordinary shares, amounting to 3.02% of its issued share capital. The move, authorized by shareholders at the annual general meeting (AGM) on June 29, 2023, was part of a broader plan allowing the repurchase of up to 20% of the company’s ordinary shares.

Repurchase Details

During the period from August 8, 2023, to December 4, 2023, Calgro M3 Holdings acquired an aggregate of 3,690,342 ordinary shares. The repurchases were executed through the JSE Limited trading system order book, demonstrating transparency and adherence to regulatory requirements. The following table outlines the key details of the repurchase:

Date of RepurchasesAggregate Number of SharesHighest Price per Share (R)Lowest Price per Share (R)Aggregate Value (R)
August 8 – December 43,690,3424.103.3114,560,803.04

The company financed these repurchases using its available cash resources, reflecting confidence in its financial stability.

Remaining Repurchase Authority

Following the recent repurchases, Calgro M3 Holdings still retains the authority to acquire up to a further 16,704,360 ordinary shares, equating to 13.68% of the total ordinary shares as of the date of the General Authority. This authorization remains valid until the company’s next AGM.

Shares in Treasury and De-listing

As of the announcement date, Calgro M3 Holdings holds 18,894,449 ordinary shares in treasury through entities such as Calgro M3 Employee Benefit Trust, Calgro M3 Empowerment Trust, and Calgro M3 Developments Limited. The repurchased shares will be promptly de-listed and canceled, aligning with JSE Limited regulations.

Financial Impact and Board’s Opinion

The financial impact of these repurchases is deemed immaterial by the company, as they were funded from available cash resources. The board, after careful consideration, expresses the opinion that, for the next 12 months, the company and its subsidiaries will be well-equipped to repay debts, maintain consolidated assets exceeding liabilities, possess adequate share capital and reserves for ordinary business purposes, and retain sufficient working capital.

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Lethabo Ntsoane

Lethabo Ntsoane holds a Bachelors Degree in Accounting from the University of South Africa. He is a Financial Product commentator at Rateweb. He is an expect financial product analyst with years of experience in reviewing products and offering commentary. Lethabo majors in financial news, reviews and financial tips. He can be contacted: Email: Twitter: @NtsoaneLethabo