Seven West Media approves on-market buyback of up to 10% of shares on issue
Shareholders are advised that the Board of Seven West Media (ASX: SWM) has approved an on-market buyback of up to 10% of shares on issue. The on-market share buyback program will be conducted on an opportunistic basis over the coming 12 months.
Should SWM fully complete the proposed share buyback, leverage is forecast to remain within the group’s target leverage range of between 1 time to 1.5 times. The buyback will be funded out of existing debt facilities.
SWM managing director and chief executive officer, James Warburton, said: “As flagged at the February 2022 interim results, the Board has assessed options regarding capital management during the second half. The significant improvement in our balance sheet over the past two years has enabled us to announce a share buyback, to commence following the announcement of the FY22 results. The on-market buyback will be for up to 10% of issued capital and will be highly earnings accretive for SWM shareholders.
“The Board believes this buyback is a prudent allocation of capital given where our share price is trading, but we will also continue to actively assess growth opportunities, be it acquisitions or investments in organic initiatives where they create shareholder value.”
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