SOUTH32 TO PUT R6.1BN BACK IN SHAREHOLDERS' POCKETS

Cape Town - South32 [JSE: S32] on Monday announced that it intends to return an additional $500m (R6.1bn) to shareholders. This is equal to 4.5% of the group’s current market capitalization.
This capital management program, which complements the company’s dividend policy, will initially take the form of an on-market share buy-back in Australia.
South32 chairperson David Crawford said: “The combination of our operating leverage, strong balance sheet, and simple capital management framework is designed to maximize returns and reward shareholders as financial performance improves."
CEO Graham Kerr explained: “Our net cash balance continues to build, giving us the financial strength and flexibility to invest in our existing operations, pursue opportunities where we can create value and return excess capital to shareholders. This $500m capital management program meaningfully increases shareholder returns and follows the recent announcement of our $192m interim dividend.”
The timing and number of shares purchased under the on-market share buy-back will be contingent upon the prevailing share price and market conditions. It is not subject to shareholder approval and will be funded from existing cash reserves.
The program is expected to be completed over a 12-month period and all alternatives will continue to be assessed to ensure the capital is returned in an efficient manner, said South32.
Source: fin24.com

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