Greek capesize owner Seanergy Maritime is looking to repurchase up to $17m of its outstanding common shares, representing around 10% of the company’s market cap. The Nasdaq-listed firm’s board of directors has approved a share repurchase plan, boosting the price by some 10% in just two days.
Seanergy said it may buy back common shares in open-market transactions following Rule 10b-18 or Rule 10b5‐1 of the Securities Exchange Act of 1934, which are considered as safe harbor provisions. The move comes as the company believes the current market situation doesn’t do justice to its share price.
Stamatis Tsantanis, Seanergy chairman and CEO, stated: “We believe that the share price and the market value of Seanergy are currently significantly undervalued, both in terms of the underlying asset or equity value of the company and also in terms of our solid ability to generate earnings in the current market environment. Considering this, we feel that a share buyback is the correct and well-timed capital allocation decision.”
The share buyback initiative will expire on December 31, 2022.