The Frasers Group PLC (LON: FRAS) share price rose 2.88% after announcing plans to launch a strategic share repurchase initiative in partnership with Deutsche Numis, effective immediately and set to continue through to the eve of the final trading day of its fiscal year, concluding on 28th April 2024. Investors cheered the announcement, but the underlying share price movement was subdued.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Under the terms of the Programme, the Company is committed to not spending more than £80,000,000 on the repurchase of shares. It has set a cap on the number of ordinary shares to be acquired at 10,000,000.
The primary objective behind instituting the Programme is to reduce the Company’s share capital. Shares repurchased under this scheme will be temporarily held as treasury shares, with the possibility of either being cancelled or re-issued, depending on the Company's strategic needs.
This share buyback Programme is designed to operate within predetermined guidelines. It aligns with the authorisation for share repurchases that the shareholders of the Company conferred during the annual general meeting held in 2023, and it fully complies with Chapter 12 of the Listing Rules.
It is important to note that the volume of shares repurchased on any given trading day under this authority could significantly impact the daily trading volume of the ordinary shares on the London Stock Exchange. In certain instances, the volume repurchased may surpass the 25% threshold of the average daily trading volume.
The share repurchases shall exceed the threshold set by Article 5(1) of Regulation (EU) No 596/2014 (as adopted into UK law by the European Union (Withdrawal) Act 2018) and the Commission Delegated Regulation (EU) 2016/1052 (also incorporated into UK law), which governs share buyback programmes.
Therefore, the Company will not qualify for the exemption outlined in the mentioned Article. By embarking on this Programme, the Company underscores its commitment to prudent capital management and enhancing shareholder value while adhering to regulatory guidelines and shareholder mandates.
Frasers Group share price.
The Fraders Group share price rose 2.88% to trade at 806.60p from Friday’s closing price of 784.00p.
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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.