ASF Group Limited (ASX: AFA) is an investment and trading house, which focuses principally on the identification and realisation of opportunities in the areas of synergy between China, Australia, UK and Europe, including new energy, mining and resources, property, infrastructure, venture capital and financial services.
AFA has updated investors about the extension of its on-market share buyback program. In the past 12 months, the company bought back 850,000 shares at an average price of $0.1027 per share.
A final share buyback notice related to the completion of the share buyback program was initiated 12 months ago and an Announcement of Buy-Back in relation to the extension for a further 12 months has been added to the announcement. AFA can acquire up to 67.7 million shares over the next 12 months as part of the buyback program.
The on-market buyback will have a total consideration of $87,260.76. The fully paid ordinary class of shares has a voting right of ‘one for one’ with a total number of 792,947,052 issued shares, without any requirement for approval from the shareholders for the buyback. As per AFA, the reason for the buyback is to enhance the shareholder value.
Bell Potter Securities Limited will act on the company’s behalf as the Broker for the buyback programme.
The company recently announced that it has entered into a share sale and purchase agreement with Clear Charm Limited for the acquisition of all its 40.49% interest in ASF Capital Pty Ltd currently held by CCL at a cash consideration of $922,000. ASFC will become a wholly (100%) owned subsidiary of the company upon completion.
The group in its latest half-yearly financial results for the six months ended 31st December 2018, reported a consolidated loss (after providing for tax and non-controlling interest) of $8,793,000 compared with a profit of $6,970,000 for the corresponding period last year. The results for the period were negatively impacted by the downturn of the financial market. For the period ended 31st December 2018, AFA recorded an impairment on listed investments of $2,910,000 due to the decline in share prices.
The principal investments of the group, included ActivEX Limited (ASX: AIV), Rey Resources Limited (ASX: REY) and Key Petroleum Limited (ASX: KEY). AFA holds 19.6% of AIV with a book value of $1.5 million, compared with its market value as at December 31, 2018, of $6.95 million, 16.3% of REY with a market value of $8.67 million and 15.7% of the issued capital of KEY with a market value of $1.1 million.
On the price-performance front, the stock of ASF Group last traded at $0.120, with a market capitalisation of $95.15 million as on 20th May 2019. The stock has yielded a substantial YTD return of 71.43% and exhibited returns of 64.38%, 33.33% and 20.0% over the past six months, three months and one month, respectively. Its 52-week high price stands at $0.170, with an average trading volume of 56,540.
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