Financial advisory business Moelis Australia (ASX:MOE) has today announced it's entered into a binding buyback agreement with Moelis & Company (NYSE:MC) to purchase 8 million Moelis shares from M&C via a selective buyback at a price of $3.40 per share.
This represents approximately 5.1 per cent of Moelis’ issued share capital and will be subject to Shareholder approval at an EGM to be held in the coming months.
In conjunction with the Buyback, Moelis & Company has sold 12.5 million Moelis shares at $3.40 per share to public market investors and the Moelis Australia Employee Share Trust.
Following implementation of the Buyback, M&C’s share ownership in Moelis Australia will be 19.98 per cent.
Moelis says the Buyback and share sales will provide significant benefits to the company and its shareholders, including an increase of around 26.7 per cent increase in free float which should benefit market liquidity on the ASX.
Shares in Moelis (ASX:MOE) closed 1.87 per cent higher at $3.82 yesterday.