Weeks after completing a A$1.85 billion (US$1.17 billion) share buyback program in the market, gaming provider Aristocrat Leisure Limited has launched a new share buyback program worth up to A$750 million (US$475 million).
The new program is part of a proactive capital management strategy that will allow Aristocrat to repay its $250 million Term Loan B facility by the end of March 2025, well ahead of its May 24, 2029 due date.
In an ASX filing, Aristocrat said the decision to buy back more shares and repay debt follows the receipt of $600 million in proceeds from the recent sale of the Plarium brand, as well as continued strong operating performance and cash flow.
As the group’s leverage continues to remain below its target net leverage ratio, the company explained that it is uniquely positioned to continue to invest aggressively in growth initiatives, including strategic mergers and acquisitions. It will also be able to return cash to shareholders through dividends and an on-market share buyback program. The program will be conducted on a voluntary basis.
“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 buyback program will commence on or after 7 March 2025 and will be funded from existing cash reserves, Aristocrat explained.
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