XLMedia PLC (LON:XLM) bosses, unhappy with the marketing group’s current share price, have decided to buy back up to £15.7mln worth of shares.
For the next four weeks, XLMedia will pay 80p a share – a 10% premium to Monday’s closing price – to investors who want to sell, up to a maximum of 19.68mln shares.
READ: XLMedia shares fall as it lowers full-year profit guidance
Each shareholder will be allowed to sell up to 9.5% of their holding, although some may be allowed to get rid of a bit more if others decide not to cash in.
“The board is of the opinion that the full potential of the company is not reflected in the current share price and this tender offer accelerates our current share buyback programme, further capitalising on our current share price,” said chairman Chris Bell.
In the same statement, XLMedia said first-half trading had been in line with expectations.
Its personal finance publishing assets in North America and Canada put in a “strong performance”, although revenues in Sweden have been hit by the introduction of new gambling legislation.
Half-year results are due to be published in September.
Shares were up 7% to 77.8p on Tuesday morning. Still, over the past 12 months, the stock is down by a third.