TP ICAP Group plc has officially launched its second share buyback program, following the successful completion of its initial £30 million buyback program in January 2024. The new program will involve the repurchase of TP ICAP’s ordinary shares of 25p each, with a maximum consideration of £30 million.
The primary objectives of the share buyback initiative are to reduce the company’s capital and meet obligations under employee share schemes. TP ICAP, known for its robust cash-generating capabilities and prudent capital management framework, aims to strike a balance between investing in organic prospects like Fusion, Liquidnet Credit, and Parameta Solutions and reducing debt amid prevailing high-interest rates.
Also, in tandem with the share buyback announcement, the Board of TP ICAP is proposing a final dividend of 10.0 pence per share, representing a significant 27% increase. This would bring the total 2023 dividend to 14.8 pence per share, reflecting a commendable 19% year-on-year growth. Eligible shareholders can expect to receive the final dividend on May 24, 2024, with an ex-dividend and record date set for April 11, 2024, and April 12, 2024, respectively.
TP ICAP Group plc Initiates Second £30 Million Share Buyback Program.
Moreover, TP ICAP has successfully released £100 million of cash ahead of schedule by the end of 2023. This liquidity boost is being utilized to reduce debt and other financing obligations, thereby lowering future net finance costs and increasing investment-grade headroom.
To manage the second buyback, TP ICAP has entered into an agreement with Peel Hunt LLP. Peel Hunt will operate as a “matched” principal, executing the company’s instructions through the acquisition of ordinary shares for subsequent repurchase. Importantly, Peel Hunt will maintain independence in its trading decisions, ensuring compliance with Chapter 12 of the FCA’s Listing Rules and the company’s general authority to repurchase ordinary shares.
While the company plans to initially rely on safe harbor conditions for trading, TP ICAP reserves the right to trade outside these conditions if constraints, such as share illiquidity, arise. Peel Hunt will undertake transactions in ordinary shares on any available trading venue or over-the-counter basis, with required disclosures made as per legal obligations, independently of the ongoing buyback.
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