LONDON (dpa-AFX) - Mitie Group plc (MTO.L), on Tuesday, announced its intention to undertake a £50 million share buyback programme in respect of its ordinary shares of 2.5 pence each. The first tranche of the programme, with a maximum consideration of £25 million, will commence from the date of this announcement.
The company also confirmed the Board's decision to purchase shares for all employee incentive schemes, to eliminate the otherwise dilutive effect to shareholders of issuing new shares to fulfill the schemes.
The majority of the company's share schemes are satisfied through its Employee Benefit Trust or EBT, whilst Save As You Earn or SAYE schemes are satisfied through Treasury shares to mitigate unnecessary stamp duty costs for the employee.
In order to execute the First Tranche, Mitie said it has entered into an instruction with Peel Hunt LLP in relation to the purchase by Peel Hunt, acting as principal during the period commencing on 18 April 2023 and ending no later than 30 September 2023, of Ordinary Shares in the share capital of Mitie for an aggregate consideration of no greater than £25 million and the simultaneous on-sale of such Shares by Peel Hunt to Mitie.
Fifteen million of the Ordinary Shares acquired by Mitie will be held in Treasury, with any Ordinary Shares acquired in excess of this number to be canceled. Peel Hunt will make its trading decisions concerning the timing of the purchases of Mitie's Ordinary Shares independently of, and uninfluenced by, the Group.
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