Perenti launches buyback program

Perenti has launched an on-market share buyback program following the acquisition of drilling specialist DDH1.

The board announced to the market on Monday that it had approved the establishment of an on-market share buyback program to purchase 60 million Perenti shares. 

It comes after Perenti acquired DDH1 through a scheme of arrangement last month. 

Perenti said the company considered the program to be the best use of its funds in consideration of the “prevailing share price and having regard to the company’s liquidity requirements”. 

The contractors shares last traded at $1 each. 

“With the finalisation of the acquisition of DDH1 and having visibility over the strengthened balance sheet and free cash generation of the newly combined business, we believe that a buyback of shares at current levels represents a value accretive opportunity that maximises shareholder value, managing director Mark Norwell said. 

“Given the significant value proposition that the newly combined Perenti business represents, we believe that the current share price does not accurately reflect the underlying value of Perenti.” 

Mr Norwell added the near-term and longer-term outlook for Perenti was “very positive”.

“Over the coming months we will work to establish an updated and consolidated financial forecast for FY24 and we look forward to delivering this to market in due course,” he said.