LONDON (ShareCast) - (Sharecast News) - AIM-listed food producer Camellia has launched a £9m share buyback plan to return capital to shareholders following the completion of the $100m sale of its stake in Bermuda and Caribbean-focused insurer BF&M.
The sale, first announced in June 2023, saw Camellia dispose of its 36.9% stake to Bermuda Life Insurance, part of the Argus Group, generating a net profit of £10.7m for the company.

Camellia said the majority of the sale proceeds will help grow the business and improve profitability by investing in existing businesses and through other "value accretive growth opportunities" over the medium term.

"The completion of this transaction is an important step for Camellia, enabling it to continue focusing on its strategy of growing its agricultural businesses, through investment in its existing group companies as well as seeking new opportunities," said chief executive Byron Coombs.

When the deal was first announced, Camellia said its investment in BF&M was regarded as non-core, after years of "volatile" results from the insurance firm. In 2022, results were hit by fluctuations in financial markets "and this, together with increased underwriting exposure, has led Camellia to view this investment as beyond its risk appetite"," the company said at the time.

Separately, Camellia announced an on-market buyback of £9m-worth of ordinary shares, which it said was being made to reduce its share capital, improve share liquidity and return capital to shareholders.

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