Business
Statement re Launch of Share Buyback Programme
Statement re Launch of Share Buyback Programme.
About this update from Essentra Plc
[{"type":"text","content":"\n \n \n \n ESSENTRA PLC\n \n \n \n \n LAUNCH OF SHARE BUYBACK PROGRAMME\n \n \n \n On 2 February 2023, Essentra plc (\"Essentra\", or the \"Company\") announced its intention to return £150m of capital to shareholders through a combination of a special dividend of £90 million and a share buyback programme of approximately £60 million using the proceeds from the disposal of its Packaging and Filters businesses.\n \n \n Today, Essentra announces that it intends to commence a share buyback programme, subject to market conditions, to purchase ordinary shares of 25 pence each in the Company (\"Ordinary Shares\") for up to a maximum aggregate consideration of £60 million from the date of this announcement (the \"Buyback Programme\"). The Buyback Programme is expected to complete by no later than 31 December 2023.\n \n \n The Company has entered into an agreement with Peel Hunt LLP (\"Peel Hunt\") to conduct the Buyback Programme, acting as \"riskless\" or \"matched\" principal in accordance with certain contractually agreed parameters. Under this agreement, the Company has instructed Peel Hunt to purchase Ordinary Shares up to a maximum aggregate consideration of £60 million pursuant to the Buyback Programme. The agreement provides Peel Hunt with authority to carry out market purchases under the Buyback Programme with discretion and independently of the Company within the agreed parameters, in order that purchases can continue during closed periods and/or if and when the Company comes into possession of inside information.\n \n \n The purpose of the Buyback Programme is to reduce the share capital of the Company and return capital to shareholders. The Company intends to cancel the majority of the Ordinary Shares purchased under the Buyback Programme and retain a portion which will be issued from time to time pursuant to the Company's share option schemes.\n \n \n The directors of the Company consider the Buyback Programme to be in the best interests of the Company and its shareholders, and is expected to enhance earnings per share. Following completion of the Buyback Programme, the Board expects the Group's net financial leverage to remain less than 1.5x, in line with previous guidance.\n \n \n Any purchase of Ordinary Shares under the Buyback Programme will be carried out on the London Stock Exchange and/or other trading venues.\n \...