Global natural health and beauty products company Comvita plans to acquire on market up to 200,000 of its ordinary shares.
Comvita Chairman Neil Craig said, "these shares will be held as treasury stock and subsequently used as part of a value-add bonus scheme to reward our most loyal beekeeper suppliers who have contributed to the continued growth of Comvita. Shares provide a way for suppliers to participate in the value-add that Comvita has been able to achieve by selling premium branded products in local and overseas markets."
"It was felt a share buyback was the most appropriate mechanism to use as it would not dilute our existing shareholders holdings in Comvita."
Comvita therefore proposes to acquire its own shares by offers made through NZX's order matching market as follows:
(a) Offer period: The maximum period during which offers will be made is from and including 31 May 2012 (being three clear Business Days' notice after the date of this notice) to 31 July 2012.
(b) Equity securities to be acquired: The equity securities to be acquired during the offer period are up to 200,000 Ordinary Shares, being less than 0.8 percent of Comvita's total Ordinary Shares.
The cost of this buyback has been provided for in our 2012 financial result.
Dated the 25 day of May 2012.
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