TP ICAP Group plc (LON:TCAP) has announced that it will begin a program to repurchase its own shares. The program starts today and will involve buying back TP ICAP’s ordinary shares, which have a value of 25p each. The company plans to spend a maximum amount of £30 million on this buyback.
The goal of the program is to decrease the company’s financial resources and/or fulfill obligations related to employee share plans. Any Ordinary Shares acquired through the Buyback that are not eliminated will not receive dividends from the Company.
The Buyback demonstrates the Board’s belief in the future success of TP ICAP, shows its strong financial status. And aligns with its strategy of actively managing its capital. It is being funded through various initiatives, following the company’s relocation to Jersey in 2021. And its ability to generate cash.
TP ICAP generates cash and manages its capital carefully. The Board thinks the Share Buyback is a good choice because it allows us to invest in our organic prospects like Fusion, Liquidnet Credit, and Parameta Solutions, while also reducing our debt. This is important because interest rates are high.
Shareholders who qualify will receive an interim dividend of 4.8 pence per share on 3 November 2023. This is a 7% increase from before.
The Company will buy shares according to specific guidelines and the permission given by shareholders at the Annual General Meeting on May 17, 2023. It can buy up to 78,867,093 ordinary shares (or 10% of the total shares available).
The Company has made an agreement with Peel Hunt LLP, giving them instructions to handle the Buyback as the main manager. Peel Hunt will follow these instructions by buying Ordinary Shares on behalf of the Company for later repurchase. This agreement follows the rules set out by Chapter 12 of the UKLA Listing Rules. And the Company’s general authority to repurchase Ordinary Shares. Peel Hunt will make trading decisions for the Buyback without input or influence from the Company. This means that purchases can still be made even during closed periods for the Group.
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