Valeura Energy Announces Share Buyback Programme
Valeura Energy Inc. (TSX: VLE, OTCQX: VLERF) is set to launch a new share buyback programme. The Toronto Stock Exchange has approved the Company's notice for a Normal Course Issuer Bid (NCIB). The programme will begin shortly and is designed to enhance shareholder value.
Purpose of the Share Buyback
The NCIB's main goal is to leverage a portion of Valeura's available cash resources and future free cash flow for purchasing common shares of the Company. By cancelling these shares, Valeura aims to optimize their capital structure and improve shareholder returns.
Market Value Reflection
In the current market, Valeura believes that the trading price of its shares may not accurately reflect its intrinsic value or future growth potential. As such, the share buyback is seen as a prudent financial strategy to better align market perceptions with the Company's long-term value.
CEO's Insight on the Buyback
Dr. Sean Guest, President and CEO of Valeura, expressed confidence in the share buyback programme. He stated, "We feel Valeura's Shares represent tremendous value. I am pleased to put the mechanisms in place for us to purchase and cancel up to 10% of our public float on an opportunistic basis."
Strategic Value and Growth Plans
Additionally, Dr. Guest emphasized the importance of maintaining a strong balance sheet while pursuing value-accretive growth. He declared that the buyback aligns well with Valeura's growth strategy, which includes revitalizing existing projects and exploring new acquisition opportunities.
Details of the NCIB
Through the NCIB, Valeura has received TSX approval to repurchase up to 7,390,245 shares over the next 12 months, representing about 10% of the current public float as of a recent cutoff date. The total outstanding shares stand at 106,999,013. The volume of shares purchased will depend on various factors like market conditions and regulatory limits.
Buyback Mechanics
The buybacks will happen through the TSX and alternative trading systems, and all shares acquired will be canceled thereafter. The daily limit on repurchase volumes is set at 78,509 shares, or 25% of the average daily trading volume for the specified period.
Automatic Share Purchase Plan Implementation
To facilitate these purchases, Valeura will implement an Automatic Share Purchase Plan (ASPP) with a designated broker. This plan will allow the Company to buy shares at pre-set intervals, particularly during trading black-outs or when it cannot actively engage in the market.
About Valeura Energy
Valeura Energy Inc. is a publicly traded Canadian company, actively engaged in exploring and producing petroleum and natural gas resources in Southeast Asia, notably in Thailand and Türkiye. Its growth strategy is focused on reinvesting in its existing asset portfolio while pursuing additional growth avenues.
Commitment to ESG
Valeura is dedicated to high environmental, social, and governance standards while seeking growth opportunities that yield substantial returns for its stakeholders.
Frequently Asked Questions
What is the objective of Valeura's new share buyback programme?
The share buyback programme aims to utilize Valeura's cash resources to repurchase shares, thereby enhancing shareholder value.
How many shares is Valeura authorized to buy back?
Valeura is authorized to repurchase 7,390,245 shares, which is approximately 10% of its public float.
What factors will influence the number of shares bought back?
Factors include the market price of the shares, daily repurchase limits, and overall market conditions.
Who is responsible for managing the share buyback?
An Automatic Share Purchase Plan will be implemented with a designated broker to manage the purchases.
What is Valeura's commitment regarding growth and sustainability?
Valeura is committed to sustainable growth and adheres to high standards of environmental and social responsibility while seeking value-accretive opportunities.
