Construction products company CSR has announced a share buyback, beginning March 21 and worth about a tenth of its market capitalisation.
Business Spectator reports that the maker of Gyprock plasterboard and Hebel concrete has cited a strong balance sheet and operating cash flows, allowing it to pursue “capital management initiatives”.
Building materials manufacturers have benefited from record home construction in Australia.
It will purchase $150 million of its own shares, beginning March 21 and running over the 2017 and 2018 financial years. Fairfax notes that CSR’s market value is currently $1.48 billion.
“The hard work over the past few years to improve our operations and invest in new product development has delivered increased returns to CSR,” said managing director Rob Sindel.