Paysafe to Commence $124 Million Share Buyback Programme
- The programme takes advantage of prevailing market conditions and is designed to reduce the capital of the company.
Paysafe Group, a UK-based Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term provider, announced todayits intention to commence an inaugural share buyback programme of up to $124 million (£100 million).
The buyback programme comes just a week after the company incurred a massive share price decline falling by as much as 34 percent last Tuesday, after a document tied the group's operations to illegal gambling in China.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
Undervalued
The management and board of Paysafe believe that the current share price significantly undervalues the performance of the business to date and its future prospects. The company boasts a proven track record of significant cash conversion, which has been used to rapidly reduce its Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term since the announcement of the acquisition of Skrill and the associated debt fund raise in March 2015.
Furthermore, its solid balance sheet and cash generation now provide the opportunity to take advantage of prevailing market conditions to repurchase shares at highly economic levels and as a result provide immediate EPS enhancement.
In the company’s continued pursuit of bold and strategic M&A opportunities, the management sees headroom for buybacks to remain attractive at levels well in excess of the current share price.
The maximum number of shares that the company will be able to purchase under the programme will be 48,110,871 ordinary shares in the capital of the company.
Phased Approach
The programme will be undertaken using a phased approach and have a duration of 12 calendar months, subject to the buyback approval resolution being approved at the company’s next Annual General Meeting in respect of any purchases to be made after the date of that meeting. The purpose of the programme is to reduce the capital of the company; repurchased shares will be cancelled.
To facilitate the first phase of the programme, Paysafe has entered into an agreement with BMO Capital Markets to carry out on-market purchases of its ordinary shares.
Paysafe President and Chief Executive Officer Joel Leonoff commented: “I am pleased to announce Paysafe’s inaugural share buyback programme, which underlines our confidence in the business and its future prospects. The programme, and our track record of significant cash conversion, enable us to capitalise on current market opportunities without compromising our pursuit of bold M&A with a strong strategic fit.”
Paysafe Group, a UK-based Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term provider, announced todayits intention to commence an inaugural share buyback programme of up to $124 million (£100 million).
The buyback programme comes just a week after the company incurred a massive share price decline falling by as much as 34 percent last Tuesday, after a document tied the group's operations to illegal gambling in China.
To unlock the Asian market, register now to the iFX EXPO in Hong Kong
Undervalued
The management and board of Paysafe believe that the current share price significantly undervalues the performance of the business to date and its future prospects. The company boasts a proven track record of significant cash conversion, which has been used to rapidly reduce its Leverage Leverage In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders In financial trading, leverage is a loan supplied by a broker, which facilitates a trader in being able to control a relatively large amount of money with a significantly lesser initial investment. Leverage therefore allows traders to make a much greater return on investment compared to trading without any leverage. Traders seek to make a profit from movements in financial markets, such as stocks and currencies.Trading without any leverage would greatly diminish the potential rewards, so traders Read this Term since the announcement of the acquisition of Skrill and the associated debt fund raise in March 2015.
Furthermore, its solid balance sheet and cash generation now provide the opportunity to take advantage of prevailing market conditions to repurchase shares at highly economic levels and as a result provide immediate EPS enhancement.
In the company’s continued pursuit of bold and strategic M&A opportunities, the management sees headroom for buybacks to remain attractive at levels well in excess of the current share price.
The maximum number of shares that the company will be able to purchase under the programme will be 48,110,871 ordinary shares in the capital of the company.
Phased Approach
The programme will be undertaken using a phased approach and have a duration of 12 calendar months, subject to the buyback approval resolution being approved at the company’s next Annual General Meeting in respect of any purchases to be made after the date of that meeting. The purpose of the programme is to reduce the capital of the company; repurchased shares will be cancelled.
To facilitate the first phase of the programme, Paysafe has entered into an agreement with BMO Capital Markets to carry out on-market purchases of its ordinary shares.
Paysafe President and Chief Executive Officer Joel Leonoff commented: “I am pleased to announce Paysafe’s inaugural share buyback programme, which underlines our confidence in the business and its future prospects. The programme, and our track record of significant cash conversion, enable us to capitalise on current market opportunities without compromising our pursuit of bold M&A with a strong strategic fit.”