The following day after the announcement, Hongkong Land promptly started the buying. It picked up 320,000 shares at an average of US$4.67. Looking ahead, which stock could be next to practise Hongkong Land’s share buyback programme?
On Sept 6, Hongkong Land announced a US$500 million ($673 million) share buyback programme from now till December 2022. In an announcement, the company said the buyback is in line with the group’s long-standing capital allocation practice which is to prioritise investment in new assets to drive long-term growth and shareholder value; continued payment of steady and, over time, increasing dividends; and investment in existing assets on an opportunistic basis, including through share buybacks.
“The purpose of the share buyback is to reduce the capital of the company. As the holding of treasury shares is not provided for in the company’s constitution, any shares which are repurchased by the company will be cancelled,” Hongkong Land says in a statement.
