Viva Leisure has announced a year-long on-market share buy-back program targeting up to 10% of its issued shares, aiming to capitalise on market volatility and reinforce its strong cash flow outlook.
- Up to 10% of issued shares to be repurchased over 12 months
- Buy-back starts 2 March 2026, ending 1 March 2027
- Purchases capped at 5% above recent volume-weighted share price
- No shareholder approval required under Corporations Act
- Unified Capital Partners appointed as transaction broker
Viva Leisure’s Strategic Capital Management Move
Viva Leisure Limited (ASX – VVA), Australia’s second-largest health club operator, has unveiled plans for an on-market share buy-back program that could see up to 10% of its ordinary shares repurchased over the next year. The initiative, commencing on 2 March 2026 and running through to 1 March 2027, reflects the company’s commitment to efficient capital management and confidence in its underlying business fundamentals.
Capitalising on Market Conditions
The buy-back structure allows Viva Leisure to opportunistically acquire shares when market prices do not fully reflect the company’s robust cash flow generation and positive outlook. By setting a maximum purchase price at no more than 5% above the volume-weighted average price over the preceding five trading days, the company aims to balance prudent capital deployment with flexibility to respond to share price fluctuations.
Regulatory Compliance and Shareholder Considerations
Importantly, the buy-back complies with the “10/12” limit under the Corporations Act 2001, meaning it does not require shareholder approval. This regulatory framework enables Viva Leisure to execute the program at its discretion, with the ability to vary, suspend, or terminate the buy-back depending on market conditions, capital needs, and unforeseen circumstances.
Broader Business Context
Viva Leisure operates over 518 fitness locations across Australia, serving approximately 670,000 members through its corporate health clubs, franchise networks, and a technology platform that supports payments and access control. As the only ASX-listed pure-play fitness operator, the company’s decision to initiate a buy-back signals confidence in its growth trajectory and financial health amid a competitive consumer discretionary sector.
Looking Ahead
Unified Capital Partners has been appointed as the transaction broker to facilitate the buy-back, ensuring market execution aligns with the company’s strategic objectives. Investors will be watching closely to see how the buy-back unfolds and what impact it may have on Viva Leisure’s share price and capital structure over the coming months.
Bottom Line?
Viva Leisure’s buy-back program sets the stage for a dynamic year of capital management and market engagement.
Questions in the middle?
- How aggressively will Viva Leisure pursue the buy-back amid fluctuating share prices?
- What impact will the buy-back have on the company’s future capital allocation and growth investments?
- Could the buy-back signal management’s view on the current undervaluation of the stock?