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The Bank of South Pacific has resolved to conduct an on market buyback of some of its shares. A buyback is an undertaking by a company to buy back its own shares from its shareholders. BSP intends to buy back up to K15 million worth of shares which at current prices, represents less than 0.5% of BSP’s issued shares. The buyback will be implemented on 14 July 2014 for a maximum period of 12 months. The Company’s shareholders are now invited to sell to BSP up to 1000 shares of each registered holding. Any shares bought back will be cancelled.
The buyback is being undertaken as part of BSP’s capital management strategy aimed at achieving a balance between returning capital, retaining sufficient flexibility to invest capital, pursuing growth options and maintaining strong credit metrics.
It needs to be noted that the participation in the buyback is optional. Those shareholders who do not wish participate do not need to take any action. The number of shares they hold will not change, although their proportional shareholding in BSP will increase slightly due to the buyback.
The buyback is open to all BSP Shareholders in PNG as well as those residing overseas. Those interested shareholders should contact the following brokers engaged to undertake the buyback:
BSP Capital Ltd: Phone 321 4333
Kina Securities: Phone 308 3800
Payment made for the shares bought back will be made to the nominated brokers. It normally takes 7 days for the brokers to settle their clients so shareholders need to contact them directly to obtain their payments.
Kostas Constantinou, OBE
Group Chairman | Bank of South Pacific Ltd