Harvey Norman Holdings Limited Announces AU$442.3 Million On-Market Share Buyback

Harvey Norman Holdings Limited (ASX: HVN) has disclosed its intention to initiate an on-market share buyback program, aiming to acquire up to 10% of the company's ordinary shares currently in circulation. As of the closing share price on October 26, 2023, this initiative is estimated to cost approximately AU$442.3 million. Subject to market conditions, HVN anticipates commencing the buyback in November 2023 and completing it within the following 12 months.

Board's Perspective

The Board of HVN views this buyback as a suitable capital management strategy, especially in light of recent share price performance. The company remains committed to continuously evaluating opportunities for growth while retaining the necessary financial flexibility to execute its strategic plans effectively.

The Buyback Process

HVN's on-market share buyback will occur as part of its ordinary trading activities throughout the buyback period. The final volume of the buyback and the specific timing of individual transactions will depend on various factors, including market conditions, the company's prevailing share price, and any unforeseen circumstances that may arise during the buyback period. HVN has noted that it will only repurchase shares when deemed beneficial for efficient capital management, offering no guarantee of acquiring all 124,600,665 shares considered. Furthermore, the company retains the right to suspend or terminate the buyback at any point.

Details and Key Players

The on-market share buyback will be conducted in line with the terms outlined in Appendix 3C, dated October 27, 2023. Macquarie Group Limited has been appointed by HVN to oversee and facilitate the buyback process.

This announcement is set to shape the company's financial strategy in the coming year. The decision reflects the company's efforts to optimize capital management while maintaining the flexibility needed for future growth and development.

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