Under the terms of the offer, the company offered to buy back up to 242.4 million shares, representing some 9.06% of its total issued share base. At the time of the offer on March 11, this price was 17.86% higher than its last traded price of 28 cents.
Share buybacks are not an uncommon phenomenon on the stock market. Companies usually buy back stocks for many reasons, be it to consolidate ownership, preserve stock prices, or boost financial ratios.
One such company is banking solutions provider Silverlake Axis, which conducted what was known as an off-market equal access offer earlier in March, offering to buy back its own shares from shareholders at 33 cents a share.
