Kingspan planning to buy back €100m shares

INSULATION AND building materials group, Kingspan, is planning to buy back over €100 million worth of its shares.

The Cavan-based group also said yesterday it was pursuing takeover deals with a total value of about €100 million, but added that it was not certain it would succeed in closing any of them.

Kingspan announced that it is planning a share buy-back programme that could stretch to up to 10 per cent of its shares.

The company has issued 171.1 million shares, which means that it could eventually buy back up to 17.11 million of its equities, worth a total of €106 million at yesterday’s closing price of €6.20.

“The timing and amount of shares bought back will ultimately depend on the group’s pipeline of development opportunities as well as market conditions,” Kingspan’s statement said.

The company’s share price rose to €6.20 yesterday from the previous day’s close of €5.93.

Kingspan increased operating profit by 22 per cent to €236.7 million last year, but has warned that earnings could fall in 2008 as house building slows.

The company specialises in energy-saving insulation, as well as other construction-related products such as flooring.