Extreme stock market volatility in recent weeks has seen new car retail giant Eagers Automotive Limited (ASX:APE) announce its intention to buy back up to 10% of its issued share capital (up to 25,693,310 ordinary shares).
In the most recent ASX sell-off Eagers’ shares fell 11.18%, diving from $9.93 on June 8 to $8.82 on June 15 before a rebound. In the same period, the ASX All-Ordinaries index fell 7.6% before they too recovered some ground.
This buy-back strategy announcement follows the listed companies positive market guidance and trading update released on May 18.
Eagers Automotive says the buy-back reflects its board’s prudent focus on active capital management and is also testament to the company’s strong balance sheet.
The share buy-back will commence on 30 June 2022 and is expected to occur progressively within 12 months from commencement, subject to market conditions and the company’s securities trading policy.
