InterContinental Hotels Group PLC Announces Transaction in Own Shares - March 20
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Insights
The recent share repurchase by InterContinental Hotels Group PLC represents a strategic move that can have various implications for the company's market valuation and investor sentiment. Share buybacks often signal the management's confidence in the company's financial health and future prospects. By reducing the number of shares outstanding, the company can potentially increase earnings per share (EPS), which is a key metric for assessing a company's profitability. This can lead to a positive re-rating of the stock by the market, as the perceived value of each share may increase.
However, it is essential to scrutinize the context in which the buyback is taking place. The timing and price range of the repurchased shares, as well as the company's current financial position, should be evaluated. In this case, the repurchase was conducted through a reputable investment firm, Goldman Sachs International and within a narrow price range, which could indicate a well-executed transaction. Nonetheless, investors should consider the opportunity cost of such buybacks, as the funds used could have been allocated to other value-creating initiatives such as expansion or debt reduction.
The disclosed transaction details indicate a well-planned execution of the share buyback program. The average price paid per share, alongside the highest and lowest prices, provides transparency and allows for an analysis of the repurchase's effectiveness relative to market conditions. The cancellation of the purchased shares will reduce share dilution and could lead to a more favorable perception of the stock among investors.
It's also worth noting the impact of share buybacks on the company's balance sheet. The capital used for repurchasing shares is an application of cash and will affect the company's cash reserves. This action must be weighed against the potential benefits of improved financial ratios and shareholder value. Investors should monitor the subsequent financial statements to assess the long-term impact of this buyback on the company's financial health, especially in the context of the hospitality industry's recovery from any economic downturns or global events.
From a corporate governance perspective, it's important to consider the authorization of the share repurchase program by the shareholders at the Annual General Meeting. This reflects a level of transparency and adherence to corporate governance norms, as shareholders were informed and had a say in the decision. The repurchase aligns with the broader trend of companies utilizing buybacks as a method to return value to shareholders.
However, one should also consider the potential impact on corporate control. As shares are repurchased and canceled, the ownership structure of the company may shift, possibly leading to a concentration of voting power among remaining shareholders. This can have both positive and negative implications for shareholder influence and control over corporate decisions. It is essential for investors to understand these dynamics and how they might affect the company's strategic direction and governance practices in the long run.
Purchase of own shares
LONDON, UK / ACCESSWIRE / March 20, 2024 / The Company announces that on 19 March 2024 it purchased the following number of its ordinary shares of 20340/399 pence each through Goldman Sachs International ("GSI") on the London Stock Exchange in accordance with the authority granted by shareholders at the Company's Annual General Meeting on 5 May 2023 (the "Purchase"). The Purchase was effected pursuant to instructions issued by the Company on 20 February 2024, as announced on 20 February 2024.
| Date of purchase: | 19 March 2024 |
| Aggregate number of ordinary shares purchased: | 9,990 |
| Lowest price paid per share: | £ 80.4800 |
| Highest price paid per share: | £ 80.8600 |
| Average price paid per share: | £ 80.7375 |
The Company intends to cancel the purchased shares.
Following the above transaction, the Company has 164,284,233 ordinary shares in issue (excluding 7,006,782 held in treasury).
A full breakdown of the individual purchases by GSI is included below.
Enquiries to:
InterContinental Hotels Group PLC:
Investor Relations: Stuart Ford (+44 (0)7823 828 739); Aleksandar Milenkovic (+44 (0)7469 905 720);
Joe Simpson (+44 (0)7976 862 072)
Media Relations: Mike Ward (+44 (0)7795 257 407)
Schedule of Purchases
Shares purchased: 9,990 (ISIN: GB00BHJYC057)
Date of purchases: 19 March 2024
Investment firm: GSI
Aggregated information:
London Stock Exchange | Cboe BXE | Cboe CXE | Turquoise | |
Number of ordinary shares purchased | 9,990 | |||
Highest price paid (per ordinary share) | £ 80.8600 | |||
Lowest price paid (per ordinary share) | £ 80.4800 | |||
Volume weighted average price paid(per ordinary share) | £ 80.7375 |
Detailed information:
Transaction Date | Time | Time Zone | Volume | Price (GBP) | Trading Venue | Transaction ID |
19/03/2024 | 09:21:25 | GMT | 100 | 80.6800 | XLON | 958731869234320 |
19/03/2024 | 09:37:38 | GMT | 5 | 80.7200 | XLON | 958731869235459 |
19/03/2024 | 09:37:38 | GMT | 13 | 80.7200 | XLON | 958731869235458 |
19/03/2024 | 09:40:51 | GMT | 12 | 80.7400 | XLON | 958731869235608 |
19/03/2024 | 09:42:28 | GMT | 19 | 80.7600 | XLON | 958731869235658 |
19/03/2024 | 09:42:28 | GMT | 50 | 80.7600 | XLON | 958731869235661 |
19/03/2024 | 09:42:28 | GMT | 191 | 80.7600 | XLON | 958731869235659 |
19/03/2024 | 09:46:25 | GMT | 12 | 80.7800 | XLON | 958731869235940 |
19/03/2024 | 09:46:25 | GMT | 30 | 80.7800 | XLON | 958731869235941 |
19/03/2024 | 09:52:14 | GMT | 64 | 80.8600 | XLON | 958731869236414 |
19/03/2024 | 09:56:01 | GMT | 55 | 80.8400 | XLON | 958731869236665 |
19/03/2024 | 10:06:00 | GMT | 120 | 80.8400 | XLON | 958731869237244 |
19/03/2024 | 10:06:24 | GMT | 79 | 80.8400 | XLON | 958731869237270 |
19/03/2024 | 10:17:10 | GMT | 58 | 80.6800 | XLON | 958731869237883 |
19/03/2024 | 10:20:27 | GMT | 40 | 80.7000 | XLON | 958731869238075 |
19/03/2024 | 10:20:27 | GMT | 43 | 80.7000 | XLON | 958731869238076 |
19/03/2024 | 10:29:36 | GMT | 70 | 80.7200 | XLON | 958731869238745 |
19/03/2024 | 10:33:27 | GMT | 45 | 80.7400 | XLON | 958731869239042 |
19/03/2024 | 10:38:28 | GMT | 59 | 80.6800 | XLON | 958731869239560 |
19/03/2024 | 10:47:40 | GMT | 93 | 80.7800 | XLON | 958731869240051 |
19/03/2024 | 11:01:21 | GMT | 92 | 80.5600 | XLON | 958731869241471 |
19/03/2024 | 11:07:45 | GMT | 3 | 80.5400 | XLON | 958731869241898 |
19/03/2024 | 11:07:45 | GMT | 55 | 80.5400 | XLON | 958731869241897 |
19/03/2024 | 11:14:19 | GMT | 63 | 80.5200 | XLON | 958731869242365 |
19/03/2024 | 11:20:31 | GMT | 72 | 80.5200 | XLON | 958731869242967 |
19/03/2024 | 11:24:06 | GMT | 44 | 80.5200 | XLON | 958731869243198 |
19/03/2024 | 11:26:49 | GMT | 4 | 80.5400 | XLON | 958731869243356 |
19/03/2024 | 11:26:49 | GMT | 43 | 80.5400 | XLON | 958731869243355 |
19/03/2024 | 11:32:41 | GMT | 46 | 80.5000 | XLON | 958731869243666 |
19/03/2024 | 11:37:08 | GMT | 71 | 80.4800 | XLON | 958731869243841 |
19/03/2024 | 11:44:02 | GMT | 81 | 80.5200 | XLON | 958731869244173 |
19/03/2024 | 11:50:32 | GMT | 46 | 80.5400 | XLON | 958731869244524 |
19/03/2024 | 11:52:41 | GMT | 89 | 80.6000 | XLON | 958731869244655 |
19/03/2024 | 11:56:01 | GMT | 57 |
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FAQ
How many ordinary shares did InterContinental Hotels Group PLC purchase through Goldman Sachs International?
InterContinental Hotels Group PLC purchased 9,990 ordinary shares through Goldman Sachs International.
What was the average price paid per share by InterContinental Hotels Group PLC for the purchased shares?
The average price paid per share by InterContinental Hotels Group PLC was £80.7375.
What is the total number of ordinary shares held by InterContinental Hotels Group PLC after the purchase?
After the purchase, InterContinental Hotels Group PLC has 164,284,233 ordinary shares in issue (excluding 7,006,782 held in treasury).
When did InterContinental Hotels Group PLC purchase the shares through Goldman Sachs International?
InterContinental Hotels Group PLC purchased the shares on 19 March 2024.
What is the highest price paid per share by InterContinental Hotels Group PLC for the purchased shares?
The highest price paid per share by InterContinental Hotels Group PLC was £80.8600.
InterContinental Hotels Group Plc
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