Manulife announces Normal Course Issuer Bid Permitting The Purchase For Cancellation Of Up To 50M Of Its Common Shares, Representing ~2.8% Of Co's Issued And Outstanding Common Shares
Portfolio Pulse from Happy Mohamed
Manulife Financial Corporation (MFC) has received approval for a normal course issuer bid (NCIB) to buy back up to 50 million of its common shares, about 2.8% of its outstanding shares, from the Toronto Stock Exchange. This move is part of its capital management strategy to maintain regulatory capital ratios and enhance shareholder value. The repurchase program is set to start on February 23, 2024, and end by February 22, 2025, or earlier if the maximum repurchase amount is reached. Manulife aims to mitigate the dilutive impact of a reinsurance transaction on its EPS through this buyback. The repurchases can be made through the TSX, NYSE, and other platforms, with all acquired shares to be cancelled.
February 20, 2024 | 9:48 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
Manulife's approval for a share buyback program of up to 50 million shares aims to enhance shareholder value and manage capital. This could positively impact its stock price in the short term.
Share buyback programs often lead to an increase in a company's stock price in the short term due to the reduced supply of shares and the signal it sends about the company's confidence in its own future. Manulife's significant buyback plan, representing about 2.8% of its outstanding shares, is likely to be viewed positively by investors, potentially leading to a short-term price increase.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100