ArborGen announces $500,000 share buyback plan

ArborGen has announced its intention to begin an on-market share buyback, with the aim of returning up to US$500,000 of capital.

The buyback, which is being made under section 65 of the Companies Act 1993, may commence from September 2, 2024, and could run for up to 12 months or until the allocated amount has been returned to shareholders.

ArborGen will acquire the shares on the NZX Main Board and subsequently cancel them, leading to a reduction in the number of shares on issue.

The company's board believes that the current share price does not reflect the business's intrinsic value, and views the buyback as value accretive for all shareholders.

ArborGen also noted that this initiative is in line with its long-term strategy and opportunities.

The buyback programme is subject to a maximum limit of acquiring 5% of the total shares on issue, and the total number of shares that may be bought back is capped at 6.5 million.

David Knott, who holds or controls 25.8% of the shares, will not participate in the buyback.