AMCIL Extends On-Market Buy-Back with Morgans for 31 Million Shares

AMCIL Refreshes Buy-Back Program

AMCIL Limited (ASX: AMH) has announced an update to its ongoing capital management strategy by extending its on-market buy-back facility for a further 12 months. The refreshed program, effective from 24 February 2025 through to 23 February 2026, signals AMCIL’s continued commitment to returning value to shareholders while managing its capital structure efficiently.

The company has set a maximum limit of 31,437,741 ordinary fully paid shares to be repurchased during this period. This represents approximately 10% of the total shares on issue, which currently stand at 314,377,416. The buy-back will be conducted on-market, allowing AMCIL to purchase shares at prevailing market prices within regulatory limits.

Broker Appointment and Operational Details

AMCIL has appointed Morgans Financial Limited as the broker to execute the buy-back. This update replaces the previous broker arrangement and reflects AMCIL’s strategic choice to partner with a well-established financial services firm known for its expertise in equity markets.

Notably, the buy-back does not require shareholder approval, streamlining the process and enabling AMCIL to act swiftly in response to market conditions. While the exact price at which shares will be repurchased remains undisclosed, the transactions will be settled in Australian dollars.

Strategic Implications and Market Context

The extension of the buy-back facility aligns with AMCIL’s broader capital management objectives, which typically include enhancing earnings per share, improving return on equity, and providing support to the share price. By repurchasing shares, AMCIL can reduce the number of shares on issue, potentially increasing shareholder value if executed prudently.

Given the buy-back’s scale and duration, investors will be watching closely to assess its impact on AMCIL’s share price and overall market sentiment. The refreshed facility also suggests confidence from the board in the company’s financial position and outlook, as well as a willingness to deploy capital in a manner that benefits shareholders.

However, the absence of a fixed buy-back price introduces an element of uncertainty. Market participants will be keen to see how AMCIL balances opportunistic purchases with price discipline over the coming year.