Zimre mulls share buyback

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THE directors of Zimre Holdings (Zimre) are seeking authority to purchase the group’s shares, having found working capital and reserves at hand adequate to sustain operations for the foreseeable future.
Companies typically buy back their own shares when they have cash on hand and the stock market is on an upswing, a situation which a number of companies on the Zimbabwe Stock Exchange currently find themselves in.

While Zimbabwe’s inflation has fallen sharply from a high of 837 percent last July, it remained high at 56 percent in July, and local companies with excess cash have ended up buying back scrip and, or increasing dividends ­— instead of keeping the money in bank accounts.