Mmegi

Letshego moves towards share buyback

Decisions due: Letshego investors have been asked to authorise a buyback mandate  PIC: MORERI SEJAKGOMO
Decisions due: Letshego investors have been asked to authorise a buyback mandate PIC: MORERI SEJAKGOMO

Homegrown African microlender Letshego Africa has called investors for an AGM next Friday, seeking a mandate to buy back up to 10% of the group’s issued equity in order to shore up the share price values.

Directors say the move, which could involve P250.1 million for 217 million shares, would also be a signal to investors that Letshego has excess capital and is “therefore attractive to other investors that they should invest in Letshego”. This “could further improve the price of the shares”.

The microlender’s shares on the Botswana Stock Exchange are down eight percent this year and have generally been under pressure in the past three years due to executive changes and shareholder disagreements over the African expansion strategy. Faced with difficulties in parts of Africa and a maturing local business, Letshego’s pretax profits for the year ended December 2023 fell 82% to P121 million. In the year to December 2022, the microlender saw its pretax profits fall 30%.

Editor's Comment
Gov't must guard against cadre deployment

As the Botswana National Front (BNF) discusses a policy to place suitably qualified members in strategic positions, the guiding consideration should remain whether an individual is the best person to serve the country. There is nothing wrong with qualified party members applying for public positions. Political affiliation should neither disqualify a capable candidate nor give them an advantage over others. Every Motswana deserves a fair...

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