Tharisa plc Shareholders Approve Special Resolution for up to 10% Share Repurchase

Strategic Insights -

Tharisa plc, a company dual-listed on the Johannesburg and London stock exchanges, has made a significant move towards repurchasing up to 10% of its ordinary shares. In a special resolution approved by shareholders at the Annual General Meeting (AGM) held on February 19, 2025, the company aims to target up to 30.26 million shares, making up 10% of the total 302.60 million shares in issue at the time of the AGM. This decision has been taken in response to the company's shares trading at a discount due to global commodity pricing challenges, geopolitical events, and market volatility linked to U.S. trade policies.

Key Takeaways:

  • The special resolution authorizes a general repurchase of up to 10% of Tharisa plc's ordinary shares.
  • The repurchase program aims to target up to 30.26 million shares, making up 10% of the total 302.60 million shares in issue at the time of the AGM.
  • The Board of Tharisa remains optimistic about the company's strong fundamentals and growth potential despite the current market challenges.
  • Peel Hunt LLP has been appointed to manage the share repurchase program, which will be conducted on both the Johannesburg and London stock exchanges.
  • The maximum cap for the repurchase program is US$5.00 million, excluding associated expenses.
  • The repurchase program will commence on June 2, 2025, and will continue until the earliest of February 18, 2026, the exhaustion of the US$5.00 million cap, or further instruction from the company.
  • The price for repurchasing shares will be subject to certain constraints, including a maximum premium or discount of 5% based on the weighted average of market prices over the five business days preceding the transaction.
  • The repurchased shares may be held in treasury for up to two years before being cancelled if not reissued.
  • Tharisa's Chief Financial Officer, Michael Jones, highlighted the company's commitment to capital discipline, stating that the share repurchase is a strategic allocation of capital aimed at benefiting shareholders while managing the company's financial demands.

Statistics:

  • Total shares in issue at the time of the AGM: 302.60 million
  • Maximum number of shares to be repurchased: 30.26 million
  • Maximum cap for the repurchase program: US$5.00 million
  • Expected commencement date of the repurchase program: June 2, 2025
  • Expected end date of the repurchase program: February 18, 2026
  • Maximum premium or discount: 5% based on the weighted average of market prices over the five business days preceding the transaction

Sources:

  • Johannesburg Stock Exchange (JSE)
  • Tharisa plc Annual General Meeting (AGM) announcement on February 19, 2025
  • Peel Hunt LLP appointment announcement on [insert date]
  • Tharisa plc website and SENS/RNS announcements