Cimic Group, Australia’s largest contractor, has announced that it will buy back 10% of the firm’s fully paid ordinary shares.
The buy-back is within the limit permitted by the 2001 Corporations Act, and does not require shareholder approval, however the number of shares purchased will depend on price and market conditions.
The reallocation is part of the group’s aim of "enhancing shareholder returns and capital efficiency, and maintaining balance sheet flexibility to pursue future growth and investment opportunities", according to a press release.
The comment continues: "Funded by a combination of cash balances and working capital facilities, the buy-back demonstrates Cimic’s strong balance sheet position, solid cash flow generation and disciplined approach to capital management."
Earlier this year Cimic left the Middle East market with the sale of its stake in Habtoor Leighton. It also announced the part-sale of its Thiess subsidiary.
In 2019, it suffered a fall in share price after allegations of "aggressive" accounting techniques.
Image: One of Cimic’s projects is the Goldcoast light rail scheme (Via CPB Contractors, a Cimic company)