Greetings Today magazine, giving you the bigger picture

AG buying back £48m shares

Board of directors authorise repurchase scheme

AMERICAN Greetings has announced it is to repurchase up to £48million worth of Class A common shares.

The move has been authorised by the board of directors and the share repurchases are expected to be made through open market purchases or privately-negotiated transactions at prices the company deems appropriate.
AG took over 397 Clinton Cards in June after forcing the company into administration by buying up its £35million debt from the banks.
In a press release issued yesterday, the day the rebranding of Clintons was unveiled in London’s Cheapside, Chief Executive Officer Zev Weiss said: "We continue to believe that our current stock price is undervalued and want to take advantage of that discount through a new share repurchase authorization.
“We are giving consideration to the amount of cash used to pay dividends and whether a portion of the funds used to pay dividends should be reallocated to purchasing additional shares if our stock price continues to be undervalued.
“We expect that any decision to change our dividend policy would be made and announced by our second fiscal quarter earnings call in late September.
“Given our financial performance and strong balance sheet, we remain confident in our product leadership strategy and committed to finding the best ways to return capital to shareholders."

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