The CSR Limited (ASX: CSR) share price has walked out of the gates and is rangebound in early trade on Thursday.
Investors are bidding up the CSR share price in response to a company release where it announced the commencement of a $100 million share buyback.
At the time of writing, CSR is drifting less than 1% higher at $4.14 apiece. It is down 30% this YTD, seen below.
CSR to commence buyback
The company said it will begin an on-market share buyback of up to $100 million in order to unlock long-term shareholder value.
CSR said it was well-positioned with a strong balance sheet and highlighted ongoing strengths in its building products business.
The combination of factors illustrates “CSR’s strength and prospects for the coming years,” chairman John Gillam said.
“We are also progressing major property development projects that will deliver short and long-term earnings, alongside the hedged Aluminium position,” he added.
Meanwhile, CSR CEO Julie Coates said the building products segment continued to improve outcomes “across diversified market positions”.
Coates also remarked that the investment strategy is intended to promote growth and increase capacity for the business.
“Given our robust balance sheet and strong operational performance, CSR is able to invest in growth while also increasing returns to our shareholders via implementing an on-market share buyback,” she added.
CSR also hosted its Annual General Meeting today. In the last 12 months, the CSR share price has lost more than 28%.
The post CSR share price lights up amid mega $100 million buyback appeared first on The Motley Fool Australia.
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