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Gulf Navigation called and it wants its shares backMENA

Gulf Navigation called and it wants its shares back

Gulf Navigation, the Dubai-based integrated shipping company, is planning to undertake a 10% share buyback program to boost its own stock price. The company would essentially be investing in itself through the repurchasing, hoping to capitalize on the buyback when share prices eventually go up.

The company lost AED 279m last year (mainly driven by the sinking of one of its vessels off the coast of Japan), and is now aiming for a debt restructuring and refinancing deal with a series of lenders.

why it matters
Gulf Navigation says the market is experiencing “weakness” (a year into the Covid-19 era, aren’t we all?), and that the decision will contribute to investor confidence and improve stability.