Global natural health and beauty products company Comvita has announced plans to buy back up to 200,000 of its ordinary shares.
Comvita chairman Neil Craig says the shares will be held as treasury stock and used as part of a value-add bonus scheme to reward their most loyal suppliers who have contributed to the continued growth of the company.
“Shares provide a way for suppliers to participate in the value-add that Comvita has been able to achieve by selling premium branded products in local and overseas markets.
“It was felt a share buyback was the most appropriate mechanism to use as it would not dilute our existing shareholders holdings in Comvita.”
Comvita proposes to acquire its own shares by offers made through NZX’s order matching market.
Offers will be made from May 31 to July 31.
The equity securities to be acquired during this offer period are up to 200,000 ordinary shares – less than 0.8 per cent of Comvita’s total ordinary shares.
The cost of this buyback has been provided for in our 2012 financial result, says Neil.