LONDON - Distribution Finance Capital Holdings plc (DFCH), a UK-based specialist bank, announced today the launch of its share buyback program. The program aims to purchase up to £5 million or 17.5 million of its ordinary shares, which is approximately 10% of the company's issued share capital.
The move comes after the company's board determined that the current share price does not accurately reflect DFCH's future prospects and earnings potential. The buyback is also intended to enhance shareholder returns.
DFCH has appointed Panmure Liberum Limited to manage the share purchases, which will be conducted on the London Stock Exchange (LON:LSEG) within certain pre-set parameters. The maximum price per share is set at either 105% of the average middle market quotations for an ordinary share over the five business days preceding the purchase, or the higher of the price of the last independent trade and the highest current independent bid.
The share buyback program, which received regulatory approval from the Prudential (LON:PRU) Regulation Authority, is set to run until the earlier of reaching the maximum spend or June 30, 2025, subject to renewal at the company's 2025 AGM.
The company cautions that the buyback could represent a significant portion of the daily traded volume of DFCH's shares on the London Stock Exchange, potentially exceeding 25% of the average daily volume. This means that the company may not qualify for the exemption contained in Article 5(1) of the Market Abuse Regulation.
DFCH plans to hold any acquired shares in treasury and will announce any market purchases no later than 7:30am (UK time) on the business day following the transaction. The company also confirmed that it currently possesses no inside information that would affect its share price.
This share buyback program is based on a press release statement from Distribution Finance Capital Holdings plc.
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