Sharechat Logo

Tenon launches share buyback offer to cut register costs

Monday 14th November 2011

Text too small?

Tenon, the NZX-listed company that sells wood mouldings in the US, is offering to buy back shares from investors with a small stake in the company in a bid to cut administrative costs.

The company wants to buy as many as 1.25 million shares at 65 cents apiece from the 6,000 shareholders with 10,000 shares of fewer, spending as much as $813,000. The offer comes after the stock shed 46 percent of its value this year, with a sharp drop in August when it reported an annual US$2 million loss for the year through June.

The current price values Tenon at $43.5 million, though its enterprise value is $82.1 million, according to Reuters data. The shares are rated a ‘hold’ by the one analyst following the stock.

The soft earnings result came amid a tough trading environment as a moribund US economy weighed on consumer demand for housing. Still, the board is picking positive earnings before interest, depreciation, tax and amortisation for the 2012 year as the company recognises gains from restructuring.

Last month, Tenon parent Rubicon came under pressure from long-standing investor Sandell Asset Management to sell its stake in Tenon.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Tenon beefs up credit line with US$70 mln banking facility
Tenon turns profitable on EBITDA basis as US housing recovers
Tenon shares soar as mouldings maker flags return to profit
Tenon sees growth in earnings as US housing market starts to recover
Tenon sees no uplift in earnings until late 2013
Tenon seeks acquisitions, sees US recovery, loses US$11M
Tenon buys Victorian manufacturing assets
Tenon's earnings hostage to the US housing market: chairman
Tenon signs $US57.5m debt financing facility
Daily ShareChat: Tenon