InterContinental Hotels Group PLC Announces Transaction in Own Shares - March 15

Rhea-AI Summary

InterContinental Hotels Group PLC announces the purchase of its own shares through Goldman Sachs International on the London Stock Exchange. The Company bought 10,000 ordinary shares at prices ranging from £80.64 to £81.52 per share, with an average price of £81.138. The purchased shares will be canceled, leaving the Company with 164,314,223 ordinary shares in issue.

Insights

Market Analyst

The company's recent share repurchase is a strategic financial maneuver that can have several implications for the stock's performance and the company's capital structure. By reducing the number of shares outstanding, the company is effectively increasing its earnings per share (EPS), assuming net income remains constant. This can make the stock more attractive to investors due to the perception of increased profitability and financial strength.

Furthermore, the repurchase signals to the market that the company believes its shares are undervalued, which can instill confidence among investors. It's also worth noting that the buyback can provide support for the share price in the open market, potentially stabilizing volatility. However, the use of capital for share repurchases as opposed to reinvestment in business operations or pursuing growth opportunities may be a point of contention among stakeholders focused on long-term value creation.

Financial Analyst

The execution of the share buyback at a volume-weighted average price provides insight into the company's approach to capital allocation. The cancellation of the purchased shares will result in a contraction of the equity base, which can lead to a more favorable debt-to-equity ratio, enhancing the company's financial leverage metrics.

Investors should consider the timing and price range of the repurchase when evaluating the company's financial prudence. The disclosed prices and volumes provide transparency and can be used to assess the potential impact on market liquidity and shareholder value. It's critical to analyze the company's balance sheet and cash flow statements to understand the sustainability of such buybacks and to ensure that they do not compromise the company's financial health in the pursuit of short-term stock performance gains.

Corporate Governance Expert

A share repurchase program, while generally seen as beneficial for current shareholders, also raises questions about corporate governance and strategic priorities. The decision-making process behind the repurchase, including the role of the board and management's assessment of alternative uses of capital, is a critical aspect for investors to consider.

Effective corporate governance would involve evaluating whether the repurchase aligns with the company's long-term strategic goals and whether it serves the best interests of all stakeholders, including employees, customers and shareholders. Additionally, the transparency and rationale provided by the company regarding the repurchase can be indicative of the management's communication with shareholders and their commitment to shareholder interests.

Purchase of own shares

LONDON, UK / ACCESSWIRE / March 15, 2024 / The Company announces that on 14 March 2024 it purchased the following number of its ordinary shares of 20^340/399 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:	14 March 2024
Aggregate number of ordinary shares purchased:	10,000
Lowest price paid per share:	£ 80.6400
Highest price paid per share:	£ 81.5200
Average price paid per share:	£ 81.1380

The Company intends to cancel the purchased shares.

Following the above transaction, the Company has 164,314,223 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: 10,000 (ISIN: GB00BHJYC057)

Date of purchases: 14 March 2024

Investment firm: GSI

Aggregated information:

	London Stock Exchange	Cboe BXE	Cboe CXE	Turquoise
Number of ordinary shares purchased	10,000
Highest price paid (per ordinary share)	£ 81.5200
Lowest price paid (per ordinary share)	£ 80.6400
Volume weighted average price paid(per ordinary share)	£ 81.1380

Detailed information:

Transaction Date	Time	Time Zone	Volume	Price (GBP)	Trading Venue	Transaction ID
14/03/2024	09:04:58	GMT	56	81.4400	XLON	955639492782521
14/03/2024	09:06:09	GMT	54	81.4000	XLON	955639492782635
14/03/2024	09:15:55	GMT	80	81.5200	XLON	955639492783481
14/03/2024	09:18:39	GMT	56	81.3800	XLON	955639492783971
14/03/2024	09:19:56	GMT	4	81.3600	XLON	955639492784231
14/03/2024	09:19:56	GMT	8	81.3600	XLON	955639492784233
14/03/2024	09:19:56	GMT	8	81.3600	XLON	955639492784234
14/03/2024	09:19:56	GMT	10	81.3600	XLON	955639492784235
14/03/2024	09:19:56	GMT	17	81.3600	XLON	955639492784232
14/03/2024	09:23:28	GMT	23	81.2400	XLON	955639492784697
14/03/2024	09:23:28	GMT	28	81.2400	XLON	955639492784698
14/03/2024	09:27:32	GMT	75	81.1000	XLON	955639492785193
14/03/2024	09:28:32	GMT	9	81.0600	XLON	955639492785277
14/03/2024	09:28:32	GMT	10	81.0600	XLON	955639492785275
14/03/2024	09:28:32	GMT	24	81.0600	XLON	955639492785278
14/03/2024	09:28:32	GMT	40	81.0600	XLON	955639492785276
14/03/2024	09:32:48	GMT	36	80.8200	XLON	955639492785974
14/03/2024	09:36:18	GMT	22	81.0200	XLON	955639492786336
14/03/2024	09:36:18	GMT	24	81.0200	XLON	955639492786337
14/03/2024	09:37:14	GMT	49	80.9800	XLON	955639492786463
14/03/2024	09:45:18	GMT	51	81.0200	XLON	955639492787143
14/03/2024	09:47:40	GMT	45	81.0400	XLON	955639492787374
14/03/2024	09:53:52	GMT	48	81.0600	XLON	955639492788019
14/03/2024	09:55:46	GMT	7	81.0600	XLON	955639492788170
14/03/2024	09:55:46	GMT	39	81.0600	XLON	955639492788169
14/03/2024	10:01:42	GMT	49	80.9600	XLON	955639492788689
14/03/2024	10:05:44	GMT	43	80.9600	XLON	955639492789056
14/03/2024	10:10:01	GMT	63	81.0000	XLON	955639492789488
14/03/2024	10:18:00	GMT	71	81.1600	XLON	955639492790093
14/03/2024	10:19:54	GMT	49	81.1200	XLON	955639492790231
14/03/2024	10:25:45	GMT	9	81.1400	XLON	955639492790889
14/03/2024	10:25:45	GMT	38	81.1400	XLON	955639492790890
14/03/2024	10:28:56	GMT	18	81.1200	XLON	955639492791215
14/03/2024	10:28:56	GMT	36	81.1200	XLON	955639492791214
14/03/2024	10:38:17	GMT	25	80.8400	XLON	955639492792070
14/03/2024	10:38:17	GMT	35	80.8400	XLON

FAQ

How many ordinary shares did InterContinental Hotels Group PLC purchase?

InterContinental Hotels Group PLC purchased 10,000 ordinary shares.

Through which investment firm did InterContinental Hotels Group PLC purchase its shares?

InterContinental Hotels Group PLC purchased its shares through Goldman Sachs International.

What was the lowest price paid per share by InterContinental Hotels Group PLC?

The lowest price paid per share was £80.64.

What was the highest price paid per share by InterContinental Hotels Group PLC?

The highest price paid per share was £81.52.

What is the average price paid per share by InterContinental Hotels Group PLC?

The average price paid per share was £81.138.

How many ordinary shares does InterContinental Hotels Group PLC have in issue after the purchase?

After the purchase, InterContinental Hotels Group PLC has 164,314,223 ordinary shares in issue.

Will the purchased shares be canceled by InterContinental Hotels Group PLC?

Yes, the purchased shares will be canceled by InterContinental Hotels Group PLC.