The Balfour Beatty plc (LON: BBY) share price edged up 1.15% after announcing that it had appointed its corporate brokers to buy back shares on its behalf for an aggregate amount of £50 million for the first tranche of its share buyback programme as outlined in its trading update released on 7 December 2023.
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The full scope and details of the 2024 share buyback program are expected to be unveiled at the Group's full-year results announcement in March. This approach underscores the company's commitment to transparency and prudent financial planning.
The company plans to establish irrevocable commitments with its corporate brokers to execute the share buyback. This action will be undertaken through non-discretionary programs designed to repurchase shares within specific pre-set parameters.
Notably, these transactions will be carried out so that the corporate brokers will make trading decisions independently and without any influence from Balfour Beatty.
The mechanics of the share repurchase will involve open market transactions, which may be executed sporadically based on prevailing market conditions, fluctuations in share price, and trading volumes. The strategic intent behind this share buyback is to reduce Balfour Beatty's share capital effectively.
Furthermore, the company has provided a specific cap on the shares involved in this operation. A maximum of 63,162,140 Ordinary Shares, equivalent to the balance of the shareholder authority granted at the 2023 Annual General Meeting, is set to be purchased.
Moving forward, Balfour Beatty pledges to keep its shareholders regularly informed with further regulatory announcements about any purchases of Ordinary Shares by the Group as they occur.
This commitment to regular communication underscores the company's dedication to transparency and governance, ensuring stakeholders are informed of significant corporate actions that might impact their investment.
This strategic move by Balfour Beatty reflects its robust approach to capital management and its commitment to delivering value to its shareholders through thoughtful and well-executed financial strategies.
Balfour Beatty (BBY) share price.
The Balfour Beatty share price rose 1.15% to trade at 335.35p from its lowest price of 331.55p.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.