ASX Announcement - Commonwealth Bank of Australia announces details of on market share buy-back
The Commonwealth Bank of Australia today announced details of an on market buy-back of up to $200 million of the Group's ordinary shares. It is envisaged that the buy-back program will commence in early November 2000.
This share buy-back is intended to offset the dilution effect of reinvestment by shareholders of the final dividend in October under the Group's dividend reinvestment plan ("DRP"). This is consistent with the approval the Group is seeking from shareholders at the Annual General Meeting (AGM) on 26 October. The proposal to be put to shareholders at the AGM, amends the terms of the DRP in respect of future dividends to enable the Group to instruct its broker to acquire and transfer existing issued shares to DRP participants rather than issue new shares. In the meantime, the on market buy-back announced today will achieve the same objective for the October 2000 dividend.
The Group has appointed UBS Warburg to act as broker under the buy-back.
The enhancements which are being made to the Group's DRP will enable the Group to continue to actively and efficiently manage its capital base while satisfying shareholder reinvestment needs.