Dye & Durham Ltd. says it is planning to buy back up to five per cent of its shares in an normal course issuer bid.

The Toronto-based company says it will buy back up to 3,457,508 of its shares over the next 12 months starting on Friday.

The company says it is buying back its shares because it believes that, from time to time, the market price of the shares may not fully reflect the underlying value of its business and future prospects.

By buying back its shares, a company spreads its profits over fewer shares, increasing its earnings per share, a key ratio used to evaluate a company.

The plan comes after Dye & Durham failed in its attempt to buy Australian company Link Administration Holdings Ltd.

Dye & Durham CEO Matthew Proud has said the company was disappointed after the significant time and resources it invested in the deal, but that it has a robust pipeline of merger and acquisition opportunities.

This report by The Canadian Press was first published Sept. 27, 2022.

Companies in this story: (TSX:DND)