Weeks after wrapping up an AU$1.85 billion (US$1.17 billion) on-market share buy-back program, global gaming supplier Aristocrat Leisure Limited has launched a new share buy-back program of up to AU$750 million (US$475 million).
The new program is part of what the company describes as its proactive capital management strategy, which will also see Aristocrat repay its US$250 million Term Loan B debt facility by the end of March 2025 – well ahead of ahead the facility’s 24 May 2029 maturity.
In an ASX filing, Aristocrat said the decision to repurchase more shares and pay down debt follows the receipt of US$600 million in proceeds from the recent sale of social gaming brand Plarium, as well as ongoing strong business performance and cash flow.
With group-wide leverage continuing to trend below its targeted net debt leverage ratio, the company explained that it has a unique opportunity to continue to invest strongly in growth initiatives, including strategic M&A, while also returning cash to shareholders through dividends and the on-market share buy-back program. The program will be conducted on an opportunistic basis, it added.
“Aristocrat’s robust balance sheet and strong cash flow generation enables us to reinvest in the business and continue to return cash to shareholders via dividends and share buy-backs,” said Aristocrat CEO & Managing Director, Trevor Croker.
“Upon completion of the program announced today, Aristocrat will have returned AU$2.6 billion to shareholders via share buy-backs. We will actively assess growth opportunities, including strategic acquisitions and investment in organic initiatives, on an ongoing basis.”
The on-market share buy-back program will commence on or after 7 March 2025 and will be funded from existing cash reserves, Aristocrat explained.
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