Super Group board announces $25m share buyback plan
Betway parent company to return cash to shareholders on the back of a difficult year following NYSE entry
Super Group’s board of directors has announced that it has authorised a share repurchase scheme capped at $25m (£23m) of the value of the original shares.
This scheme will run until 31 December 2023, but this can be extended or shortened by the group’s directors.
In a statement to investors, the board stated that: “Super Group is not obligated to repurchase any shares.
“Repurchases, if any, will be made from time to time on the open market at prevailing prices or in negotiated transactions off the market,” the statement continued:
Alinda van Wyk, CFO of Super Group, commented: “Our debt-free balance sheet is strong, and we actively consider using cash to drive long-term shareholder value through investment and by returning cash to shareholders.
“We believe a modest share repurchase program is an efficient potential use of cash depending on market circumstances.”
The move comes almost 12 months since Super Group went live on the New York Stock Exchange. In that period, its share price has fallen significantly
After opening at $8.25 on its debut on 28 January, followed by an April peak of $11.05, Super Group’s share price sits at $3.17 following the market’s close yesterday.
Last month, the group also cancelled all private warrants and earnouts relating to the stock exchange listing.
Recently, Super Group completed the acquisition of Digital Gaming Corporation (DGC).
The deal will allow Super Group to penetrate the US market further as DGC has access to 12 states, eight of which are operational.
DGC is operational in Iowa, Pennsylvania, New Jersey, Arizona, Colorado, Indiana and Virginia under the Betway brand.