Norwegian shipowner Klaveness Combination Carriers (KCC) is plotting a share buyback to provide incentives for top management.
The Oslo-listed company, which operates innovative vessels trading both wet and dry, said it plans to acquire up to 100,000 shares over an unspecified period.
KCC has launched the scheme at a very volatile time for markets.
The stock was trading up nearly 11% at NOK 32.10 on Tuesday, as exchanges recovered some of the ground lost following the impact of the coronavirus.
This could mean an outlay of NOK 3.21m ($0.47m) at current prices, but the stock has been as high as NOK 56 within the last year.
The idea is to acquire treasury shares which may be used to fulfil obligations under current and future incentive programmes for executives, or for other corporate purposes.
Authorisation provided in 2019
The board has authorised KCC to purchase shares at up to 50% of the average daily trading volume.
It follows a decision in January 2019 to okay the potential acquisition of as many as 4.05m treasury shares.
At the end of January this year, the company carried out a bond refinancing at a lower interest rate.
The shipowner placed a new senior unsecured issue in Oslo worth NOK 500m ($54.37m).
The debt matures over five years and the coupon is Nibor plus 4.75%.
After banking the cash, KCC spent NOK 138m on buying back its NOK 300m KCC03 bonds, which were due to expire in May 2021 at interest of Nibor plus 5.25%.
