Ninety-One buys back $17.9 million in shares amid excess cash resources

At a Glance

• Ninety-One repurchases 8.68 million shares, amounting to 3.05% of issued share capital.
• The buyback, valued at $17.91 million, was funded by the company’s excess cash resources.
• Regulatory compliance ensures transparency in the process funded by excess cash.

Ninety-One, the dual-listed asset management group with a presence on both the London Stock Exchange and Johannesburg Stock Exchange(JSE) Limited, has executed a share buyback program totaling R332.48 million ($17.91 million) in a move to put its excess cash resources to strategic use and enhance shareholder value while maintaining a strong financial position.

The repurchase which was conducted between August 7, 2024, and January 17, 2025, accounted for 8.68 million ordinary shares, representing 3.049 percent of the company’s issued share capital, as authorized by shareholders at the annual general meeting on July 25, 2024.

Details of the buyback

Ninety One’s ordinary shares were acquired at prices ranging from R32.29($1.741) to R39.25($2.117) per share, reflecting prudent capital allocation.

Following the repurchase, 338,911 shares are set to be de-listed and canceled, while 8.34 million shares have already been retired.

This reduces the company’s outstanding shares to 276.07 million, reinforcing its commitment to returning value to shareholders.

The buyback was executed through an order book operated by the JSE, ensuring adherence to its listing and regulatory requirements, which mandate transactions to occur without prior arrangement with counterparties.

Financial implications

Ninety-One confirmed that the financial impact of the buyback on its overall operations is immaterial.

However, the cancellation of repurchased shares eliminates the payment of future dividends on those shares and leads to the forfeiture of interest income on the cash utilized for the buybacks. The company does not hold any treasury shares.

During its closed period from October 1 to November 20, 2024, no shares were repurchased, adhering to regulatory restrictions. This compliance highlights the company’s commitment to transparency and governance.

Strategic rationale

The repurchase leverages Ninety One’s strong liquidity position to optimize its capital structure while boosting shareholder confidence. By reducing the total number of outstanding shares, the company enhances earnings per share and creates long-term value for investors.

Shares of Ninety One closed at £1.53 on the London Stock Exchange today, reflecting a 4.66% gain since the start of the year.

A strong market position

Founded in 1991, Ninety One has grown into a global asset management firm with expertise across equities, fixed income, and multi-asset strategies.

It’s dual listing on the London Stock Exchange and JSE reinforces its credibility among global investors.

The successful buyback program signals the company’s proactive approach to capital management as it continues to navigate a dynamic market environment.