Magellan Financial (ASX:MFG)
has launched an on-market share buyback of up to 10 million ordinary fully paid shares, representing up to 5.4 per cent of shares on issue.
The news comes after the board previously announced its intention to consider an on-market buyback at Magellan’s interim results briefing on February 18.
Magellan will conduct the buyback within the “10/12 limit” permitted under the Corporations Act 2001, which means the company may buyback up to 10 per cent of issued capital in any 12-month period without shareholder approval.
Magellan said the buyback will be funded from the company's existing cash and financial assets. It also said the timing and actual number of shares purchased will depend on the prevailing share price, market conditions and other relevant factors.
“We believe the on-market buy-back announced today represents an effective way to enhance value for shareholders. The buyback is consistent with our aim to deliver capital efficiency, solid dividends and attractive returns for shareholders with a focus on our core funds management business," said chairman Hamish McLennan.
Shares in Magellan Financial (ASX:MFG)
are trading 4.6 per cent higher at $14.49.