UK-based payments services company, Paysafe Group has confirmed that it intends to begin an inaugural share buyback program of up to £100m (€119.2m/$123.8m).
The buyback program comes just after the company incurred a massive share price decline, falling by as much as 34% last Tuesday, after a document tied the group’s operations to illegal gambling in China.
Paysafe believes its current share price “significantly undervalues” the performance of the business to date, as well as its future prospects, and the initiative could boost this.
The maximum number of shares the firm will be able to purchase under the new program will be 48,110,871 ordinary shares.
The programme will be undertaken using a phased approach and have a duration of 12 calendar months, subject to the buyback approval resolution being approved at the company’s next Annual General Meeting.
To facilitate the first phase of the program, Paysafe has entered into an agreement with BMO Capital Markets to carry out on-market purchases of its ordinary shares.
Chief Executive of Paysafe, Joel Leonof says: “I am pleased to announce Paysafe’s inaugural share buyback program, which underlines our confidence in the business and its future prospects.
“The program, and our track record of significant cash conversion, enables us to capitalise on current market opportunities without compromising our pursuit of bold M&A with a strong strategic fit.”