The company wants to signal that its share price, at current levels, is undervalued. By buying back those shares, the number of Silverlake Axis shares in circulation will be reduced and will then have the effect of increasing the earnings per share.
Silverlake Axis shares surged 8.93% to close at 31 cents on March 14 after the company announced an off-market purchase offer worth $80 million to buy back a portion of shares held by the minority owners of the company.
Silverlake Axis, which providers software and IT services for financial services firms, plans to offer 33 cents each for up to 242.4 million shares, representing some 9.06% of its total issued share base.
