BAS spends $500K on buy-back
Bermuda Aviation Services shares rose 6.6 percent after the company spent more than half a million dollars to buy back 152,790 of its shares from the company's own pension plan trust.
“This transaction settles on July 25, 2014 and the shares were acquired for $3.21 per share,” BAS stated.
“In December 2013, BAS decided that it no longer wished to be exposed to the risk that was presented by its defined benefit pension plan. Therefore, the company devised a strategy to wind up the defined benefit plan.
“A component of this strategy involved the liquidation of the plan's assets so that annuities could be purchased for the plan's participants. The BAS shares were one of the investments that are held by the BAS Pension Plan Trust.
“In June 2014, the BAS board of directors decided that the company would be best served if these shares were acquired by the company and cancelled. Therefore, these shares were acquired on July 25, 2014 and will be cancelled.”
BAS shares climbed 20 cents to $3.21 and was the only mover on the Bermuda Stock Exchange. The Royal Gazette/BSX Index rose 0.86 of a point, or 0.06 percent, to close on 1,373.39.