Kenyan media company Nation Media Group (NMG) has received shareholder approval for a final dividend payment of 285.44 million Kenyan shillings ($2 million) for the financial year ending December 2022. Each shareholder will receive a dividend of $0.011 per share held, with the payment scheduled for around July 28. Additionally, NMG will commence a second share buyback program, starting concurrently with the opening of trade at the Nairobi Securities Exchange. The company's board proposed the share buyback following the success of a similar program in 2021, during which NMG acquired 17.1 million shares from the market. The new buyback program allows NMG to repurchase up to 10 percent of the total issued shares by July 2, 2024.
The share buyback aims to address the undervaluation of NMG shares and accommodate shareholders looking to liquidate investments at a fair value. NMG's share price has experienced a rally, rising from $0.11 to a high of $0.15 before closing at $0.14. The previous share buyback program, conducted from June to September 2021, achieved a 82.25 percet performance with the sale of 17.1 million shares. NMG plans to acquire up to 19.03 million ordinary shares, representing 10 percet of the current issued and paid-up share capital. The buyback program is intended to rectify undervaluation and provide liquidity options for shareholders.