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Transfield to conduct share buyback

Transfield to conduct share buyback

Transfield Services (ASX:TSE) plans to buy back up to 10% of its own stock in a bid to improve the remaining shares' value.

The operations, maintenance asset and project management services provider said it planned to start conducting the transactions by as early as October 20.

Announcing the buyback, Transfield's board said it believes the stock's current market price does not reflect the company's fundamental value.

TSE shares have fallen in value from $3.36 at the start of the calendar year to $1.810 on Tuesday, a day before the buyback was announced.

The process will be funded with facilities raised through the divestment of recent assets, including the company's USM business and part of its stake in the Transfield Services Infrastructure Fund.

In accordance with ASX listing rules, the maximum amount of shares to be bought back will be 10% of its lowest number of shares on issue over the last 12 months.

Transfield in June announced that it had won two [[xref:www.cfoworld.com.au/news/534240/transfield-wins-second-ufb-subcontract/ |contracts|CFOWorld]] to provide support for parts of New Zealand's Ultrafast Broadband fibre network project.

TSE shares climbed 8.84% to $1.970 after the buyback was announced on Wednesday.

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Tags TransfieldASX:TSEshare buybackMergers and acquisitions

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