CC buys back shares

CREDIT Corp (PNG) chairman Garth Mcllwain yesterday an-nounced that the board of directors has resolved to buy back up to K2 million worth of its own shares.
“The buy back opens on Nov 29 and will continue for a period of 12 months,” McIlwain said.
Based on the last sale price for CC shares, the buy back represents approximately 0.5% of the issued capital of the company.
The board had taken the decision to undertake the buy back because Credit Corp’s shares were trading well below net asset backing per share based on the last audited financial statements.
In a statement, CC said it had surplus capital and the directors believe that an investment of its surplus capital in the company’s own shares represented  the best alternative for its Shareholders under its capital management strategy.
The statement said CC intended to enter the market from time to time to purchase shares under the buy back.
Shareholders are invited to sell up to 5,000 CC shares of each registered holding. BSP Capital Ltd and Kina Securities Ltd have been appointed as brokers to undertake the scheme
Under CC’s agreement with the brokers, CC will pay any brokerage on shares bought back.
Selling shareholders will not pay brokerage.
Shareholders may sell shares in CC through either of the appointed brokers.
At the release of the half-year profit results to June 30 this year, McIlwain informed the market that “the CC Group maintains very strong capital and funding positions”, the statement said.
The board is confident that the operating results for the second-half of this year would exceed those recorded in the first half of the year and that the Group will maintain its prominent status as one of the largest locally-owned corporations operating in the South Pacific with total assets of K772.57million.