LONDON (CelebrityAccess) — Merck Mercuriadis’ Hipgnois Songs Fund announced it has launched a program to buy back shares of the company from current stockholders.
The share repurchase program kicks off today and will seek to repurchase ordinary shares within certain pre-set parameters.
While the company did not offer a reason for the program, share buybacks have replaced dividends in some instances, as a way to return cash to shareholders.
Such programs can also help to shore up a company’s share price amid a financial downturn, consolidate ownership, or reduce costs. They can also occur if management believes that the company’s share price is undervalued on the market.
The company’s share price has slid by more than 30% since the beginning of the year and has been pummeled in recent weeks.
According to Hipgnosis, the stock buyback program will be overseen by Singer Capital Markets Securities Limited and will end on December 8th.