Transfield Services announces on-market share buy-back
Transfield Services today announced its intention to return funds to shareholders through an on-market buy-back of up to 10 per cent of its lowest number of shares on issue over the last 12 months, in accordance with the ASX Listing Rules.
The share buy-back will be EPS accretive and fully funded from facilities available as a result of the funds received from major transactions in FY11.
The Company will monitor the position daily to ensure that the ongoing implementation of the share buy-back meets the Company’s capital management criteria.
Following the acquisition of the Easternwell Group in December 2010, Transfield Services has subsequently made several significant divestments including the sale of the USM business and the sell down of the Company’s interest in the Transfield Services Infrastructure Fund to a 20 per cent holding.
The Board considers that the current market price of Transfield Services’ shares does not fully reflect the Company’s fundamental value and that the share buy-back is in the best interests of all shareholders.
Transfield Services Managing Director and Chief Executive Officer, Peter Goode said: “Transfield Services is well positioned with a strong balance sheet (including funds released by the recent divestments), on-target operating cash flows, headroom in debt facilities and attractive growth opportunities. This decision reflects the Board’s confidence in our ability to continue to build the business and increase shareholder value.”
The buy-back achieves Transfield Services’ key objectives of ensuring an efficient capital structure, maintaining prudent levels of gearing, and having sufficient balance sheet flexibility to continue pursuing current growth initiatives.
Transfield Services has appointed J.P. Morgan to act as its broker to the on-market buy-back program.
The earliest that the share buy-back can commence is 20 October 2011.
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Transfield Services employs over 19,000 people across 18 industries and 10 countries.
We are a global provider of operations, maintenance and construction services to the Resources, Energy, Industrial, Infrastructure, Property and Defence sectors.
We deliver asset management services across all phases of the asset lifecycle, from concept and creation, to services that sustain, optimise and enhance our Client’s assets. With diverse global experience and expertise, we share our knowledge and challenge thinking to develop and implement innovative solutions that deliver real value for our Clients. Our unique approach enables us to deliver continuous improvements in asset performance and sustain long term relationships with our Clients and partners.