Accra, Ghana// – Scancom PLC, the parent company of MTN Ghana, has announced to the Ghana Stock Exchange (GSE) and the public its intention to sell a total of 729,810 shares acquired through a restricted buy-back programme on the open market.
This is contained in a press release issued and signed by the Company Secretary of Scancom PLC, Madam Pala Asiedu Ofori in Accra on Friday, 22 August.
According to the release: “The sale of these shares is expected to commence from 25 August 2025, and it will be conducted in accordance with all applicable regulations and guidelines set forth by the Ghana Stock Exchange (GSE) and the Securities and Exchange Commission (SEC).
The transaction will be executed by IC Securities Ghana Ltd at the prevailing market price on the day of the transaction.
This announcement is being made in accordance with the rules and regulations of the Ghana Stock Exchange (GSE) and the Securities and Exchange Commission (SEC), it added.
What are buybacks
Trevir Nath, an experienced financial writer working with various startups, financial services companies, and news publications, explained: “Buybacks have become a popular way for a company to return value to shareholders, similar to a dividend.
Instead of returning profits to shareholders in a quarterly cheque, the company buys its own shares on the open market, increasing its stock price”.
Although they attract frequent criticism, many companies prefer to spend their earnings on buybacks rather than dividends. Every year from 1997 to 2023, the value of stock buybacks for S&P 500 firms outpaced the value of dividends. In the 1980s, the dividend yield for the S&P 500 was typically between 3.5% and 5.5%. The last time it exceeded 2.0% was in 2015.1
Four major reasons investors like buybacks are
- A stock repurchase, or buyback, is when a company buys its own shares in the open market and retires them.
- Buybacks tend to boost share prices in the short-term, as they reduce the supply of outstanding shares and the buying itself bids the share higher in the market.
- Shareholders typically view buybacks as a sign of corporate health and optimism from company managers that their shares are undervalued.
- When buybacks rise for U.S. companies overall, this is seen as confidence in the American economy going forward.
- Many companies use buybacks to take advantage of undervalued stocks, while others do it to artificially boost their stock price.