CBA completes share buy back
(30 March 2004 – Australia) Commonwealth Bank has completed an off-market share buy back, totalling 19,360,759 shares, bought at $27.50 per share for a total cost of $532.4 million.
CBA said this represented about 1.5 percent of its ordinary shares on issue, with all tendered at or below $27.50, or as a Final Price Tender. All shares were accepted in full with no scale back applied to any of the accepted tenders, the bank said.
It said payment for shares bought back would either be credited to shareholders’ accounts or they would receive cheques by 5 April 2004. Shares that had been tendered into the buy-back but not bought back would be released to shareholders’ holdings.
CBA chief executive officer David Murray said shareholders who sold shares into the buy-back receive franking benefits on the deemed dividend included in the disposal price.
"For shareholders who retained their shares, the buy-back price represents a very efficient price for the Bank to repurchase its shares and thereby enhances earnings per share and long term shareholder value," Murray said.
It said payment for shares bought back would either be credited to shareholders’ accounts or they would receive cheques by 5 April 2004. Shares that had been tendered into the buy-back but not bought back would be released to shareholders’ holdings.
CBA chief executive officer David Murray said shareholders who sold shares into the buy-back receive franking benefits on the deemed dividend included in the disposal price.
"For shareholders who retained their shares, the buy-back price represents a very efficient price for the Bank to repurchase its shares and thereby enhances earnings per share and long term shareholder value," Murray said.
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