The Baobab Weekly


In this edition of the Baobab Weekly, Nation Media Group (NMG), Kenya’s largest media house, proposed to buy back up to 10% of its issued shares. A share buyback is when the issuing company intends to repurchase some of its outstanding shares originally issued to raise capital. In exchange for giving up ownership in the company and periodic dividends, shareholders are paid the fair market price of the stock. Companies choose to buy back because of a temporary undervaluation of the stock. Warren Buffett, the GOAT capital allocator, did repurchase some of the stocks of his company last year with this reasoning in mind:

source: Kenyan Wall Street

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