360 Capital Completes $8.7M Buy-Back, Launches $12.5M On-Market Plan
360 Capital Group has wrapped up a significant off-market buy-back and announced a new on-market buy-back initiative, signalling a strategic move to enhance shareholder value using excess cash.
- Completed off-market buy-back of 13.3 million securities at $0.65 each
- Off-market buy-back represents 6.3% of total securities issued
- No scale-back of acceptances required in off-market buy-back
- On-market buy-back approved for up to 19.2 million securities
- On-market buy-back funded from $99 million in cash and short-term investments
Off-Market Buy-Back Completion
360 Capital Group (ASX:TGP) has successfully completed its off-market buy-back program, repurchasing 13,320,216 securities at a fixed price of $0.65 per security. This buy-back, which closed on 21 May 2025, accounted for 6.3% of the total securities on issue and required no scale-back of acceptances, indicating strong shareholder participation and support.
The repurchased securities will be cancelled on 27 May 2025, effectively reducing the number of securities on issue and potentially enhancing earnings per security for remaining shareholders.
On-Market Buy-Back Plans
Following the off-market buy-back, 360 Capital intends to activate an on-market buy-back of up to 19,247,230 securities. This program was approved by shareholders at the Group’s Annual General Meeting in October 2024 and is set to be funded from the Group’s existing cash reserves and short-term investments, which together total approximately $99 million.
The Group has appointed Morgans Financial Limited to manage the on-market buy-back, signalling a structured and professional approach to this capital management strategy.
Strategic Rationale
The Directors of 360 Capital Group believe that buying back securities at a discount to the Group’s net asset value represents the best use of excess cash. This approach aims to deliver value to shareholders by reducing the number of securities on issue and potentially narrowing the trading discount to net asset value.
With $81 million in cash and $18 million in short-term investments available following the off-market buy-back, the Group is well-positioned to execute the on-market buy-back without the need for additional funding.
Looking Ahead
Investors will be watching closely as 360 Capital embarks on its on-market buy-back, which could influence share liquidity and price dynamics. The Group’s commitment to active capital management underscores its focus on enhancing shareholder returns amid prevailing market conditions.
Bottom Line?
360 Capital’s dual buy-back strategy marks a decisive step in capital management, with the on-market phase set to test market appetite and impact.
Questions in the middle?
- What timeline will 360 Capital follow to complete the on-market buy-back?
- How will the buy-backs affect the Group’s share liquidity and trading discount?
- Could further capital management initiatives be on the horizon following these buy-backs?
