- DDH1 (DDH) launches an on-market share buy-back program of up to 10 per cent of the issued capital
- The company will buy back shares sporadically over a 12-month period, starting from July 18
- After purchasing shares, it will notify the ASX the next business day and the number of shares on issue will reduce accordingly
- The amount of shares DDH buys will be dependent on market conditions, but it will not purchase shares above five per cent of the five-day volume-weighted average price
- Shares are trading 16.4 per cent higher at 74.5 cents each at 1:02 pm AEST
DDH1 (DDH) has launched an on-market share buy-back program of up to 10 per cent of the issued capital.
The company provides drilling services to the Australian mineral exploration and mining industry.
It will buy back shares sporadically over a 12-month period, starting from July 18.
After purchasing shares, it will notify the ASX the next business day and the number of shares on issue will reduce accordingly.
The amount of shares the company buys will be dependent on market conditions, but it will not purchase shares above five per cent of the five-day volume-weighted average price.
Chairperson Diane Smith-Gander said it reviewed the prices of shares and its business performance before making the decision.
“The Board considers the prevailing price for DDH1 shares, particularly since early June, has significantly undervalued DDH1, which is a key reason for announcing this buy-back,” she said.
“The announced share buy-back should not impact DDH1’s stated dividend policy of paying dividends, between the range of 30 per cent to 50 per cent of Net Profit After Tax due to the robust operating cash flows of the business.”
Shares were trading 16.4 per cent higher at 74.5 cents each at 1:02 pm AEST.