GQG Partners Inc. halts CDI buyback

GQG Partners Inc. (ASX:GQG) has terminated its proposed on-market buyback of CHESS Depositary Interests (CDIs). The decision is due to uncertainties regarding the US tax treatment, which could require withholding up to 30% of proceeds for tax obligations. The company cannot resolve these issues before its year-end blackout period and has amended its Appendix 3C to reflect the buyback's termination.

GQG's cautious approach and future plans

GQG Partners Inc. has decided not to proceed with its previously announced CDI buyback due to unresolved US tax issues. The potential requirement to withhold up to 30% of proceeds for tax purposes was a significant factor in this decision. While the buyback is currently terminated, GQG remains open to reconsidering it in the future if the tax treatment becomes clearer and advantageous. The announcement was authorized by Frederick H. Sherley, with further steps for executive purchases outlined by Rajiv Jain. GQG, a global investment boutique managing approximately US$159.5 billion, continues to prioritize its stockholders' best interests.

Executive commentary on buyback decision

The uncertainty surrounding the US tax treatment of the transaction necessitates this decision. We may reconsider the buyback in the future if we achieve clarity and it is beneficial for stockholders.