Harvey Norman Holdings Limited has announced an extension of its on-market share buyback program. The homewares and electronics retailer intends to repurchase up to 10 per cent of its shares on issue, with an estimated cash outlay of approximately $900 million. Harvey Norman is a major Australian retailer offering a wide range of furniture, bedding, electrical appliances, computers and entertainment products. The company also provides financial services and operates a network of franchised stores.
Macquarie Securities has been appointed to execute the buyback. The estimated cost to acquire up to 124,600,665 shares is based on the company’s closing share price on Friday. The board, led by executive chairman Gerry Harvey, has characterised the buyback as “appropriate capital management,” citing the company’s recent share price performance. Over the past year, Harvey Norman’s stock has increased by almost 60 per cent.
The board indicated it will continue to assess growth opportunities and maintain financial flexibility to execute its strategic objectives. This buyback reflects the company’s confidence in its financial position and future prospects. The company will not be making any additional comments regarding the buyback program at this time.
The ultimate size and timing of any share purchases will depend on various factors, including prevailing market conditions and Harvey Norman’s share price. The company will provide updates to the market as required.
