Banpu winds up share buy-back as board approves 5% cut in capital
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Banpu has closed its share buy-back scheme after spending Bt3.9 billion. Its board of directors promptly approved the 5-per-cent reduction in registered capital.
Brokers do not see any adverse impact on Banpu’s fundamentals.
According to Banpu chief executive Chanin Vongkusolkit, the company had notified the Stock Exchange of Thailand that its 13.6-million-share (equivalent to 5 per cent of outstanding shares) buy-back scheme ended on Tuesday. Its board of directors approved reducing the company’s registered paid-up capital equivalent to the 13.6 million shares Banpu bought back.
The buy-back scheme began on February 20. By this Tuesday, Banpu had bought back 256,000 shares at the lowest price of Bt237 (totalling Bt59.8 million). Banpu spent more than Bt3.9 billion to buy back the shares.
Banpu’s capital reduction via the buy-back should not have significant adverse impact on fundamental factors or on the share price as the capital reduction was only 5 per cent, Kiatnakin Securities stock analysts said.
However, Banpu’s shares were continuing to drop amid investors’ concerns over the dimming future of coal industry.
Chanin said coal-sector shares were dropping region-wide, not just Banpu’s.
Its buy-back programme reflected confidence in the fundamentals and Banpu’s management, as it meant the company must have enough cash and accumulated profits to carry it out.
Some mutual-fund investors foresee some recovery in coal-sector shares in the third and fourth quarters of this year, while some think it will take longer, according to feedback Banpu received from its recent roadshow in Europe and Asia.
