Mexican cement manufacturer Cemex said Tuesday that it had begun a share buyback program that allows the company to acquire share worth up to US $ 500 million.
In a statement sent to the Mexican Stock Exchange (BMV), Cemex said the repurchase was approved at its ordinary general meeting of shareholders held on March 28, for US $ 500 million.
This Monday, Cemex repurchased 39 million Ordinary Participation Certificates (CPO) at a weighted average price of 5.9 pesos per share. The total amount of the repurchase was 230.1 million pesos (US $11.6 million).
Cemex hired Citibanamex to repurchase these titles.
“A share repurchase is carried out when a stockbroker uses its cash to buy its own shares in order to send a signal to the market that the company considers that the current price of its securities is cheap, and that it suits them to buy back shares, ”said Fernando Bolaños, stock market analysis manager at Monex.
On the other hand, an analyst who asked not to be mentioned commented that the profits of a company are divided among its shareholders and having fewer titles in the market, due to the repurchase, the greater the benefits to the shareholders, whendistributing dividends.