Mader Group Approves On-Market Buy-Back of up to $30m

Mader Group Limited (ASX:MAD) has announced that its board has approved an on-market share buy-back of up to $30 million as part of the group's ongoing capital management strategy. Mader said the buy-back provides an additional mechanism to allocate capital and that the group intends to acquire shares where the board considers that Mader's prevailing share price does not appropriately reflect the underlying value and long-term prospects of the business. The program is discretionary and does not require Mader to acquire any particular number or value of shares, and the group may vary, suspend or terminate it at any time having regard to market conditions, Mader's financial position and alternative uses of capital.

The buy-back will be conducted within the “10/12 limit” permitted under the Corporations Act 2001 (Cth) and therefore does not require shareholder approval, and shares acquired under it will be cancelled in accordance with that Act. Mader said the buy-back is expected to commence following expiry of the applicable statutory notice period and will operate for up to 12 months unless completed, varied, suspended or terminated earlier. The company said the program does not alter its growth ambitions or investment strategy and that it retains significant financial capacity to continue investing in organic growth and to pursue further opportunities. Executive Chairman and Founder Luke Mader said Mader has always taken a disciplined approach to capital allocation, that its priority remains investing in the business, and that its strong financial position provides the flexibility to acquire Mader shares when the company believes the market price represents compelling value. Further details are contained in an Appendix 3C lodged with the ASX on the same day.