InterContinental Hotels Group PLC Announces Transaction in Own Shares - March 25
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Insights
The recent share buyback by InterContinental Hotels Group PLC represents a strategic use of the company's capital to manage its share structure. By reducing the number of shares outstanding through cancellation, the company is effectively increasing the earnings per share (EPS), which could lead to a positive market reaction. This action also signals to the market that the company believes its shares are undervalued, which can be seen as a confident move by management regarding the company's financial health and future prospects.
However, it's essential to consider the opportunity cost of such a buyback. The capital used could have been invested in growth opportunities or used to pay down debt. Investors may want to watch the company's future investment strategies and debt levels to assess the long-term impact of this buyback on the company's financial flexibility.
From a financial perspective, the share repurchase carried out by InterContinental Hotels Group PLC via Goldman Sachs International on the London Stock Exchange is a noteworthy event for investors and analysts. The transaction details, including the aggregate number of shares purchased, the price range and the average price paid per share, provide important data points for evaluating the company's market valuation and liquidity.
The cancellation of the purchased shares will potentially increase the value of the remaining shares if the market perceives the buyback as a positive signal about the company's intrinsic value. Additionally, this could potentially improve financial ratios such as return on equity (ROE), which may make the stock more attractive to investors seeking companies with efficient equity usage.
Share repurchases are often subject to scrutiny from a corporate governance standpoint. The decision by InterContinental Hotels Group PLC to buy back shares following authorization from shareholders at the Annual General Meeting demonstrates adherence to good governance practices. It also reflects shareholder alignment, as the repurchase was executed under shareholder-approved terms.
However, it's important for stakeholders to monitor the balance between returning value to shareholders and maintaining sufficient capital for operational needs and strategic initiatives. The impact of this buyback on corporate governance can be seen as positive, provided it was made with a long-term strategic vision and not merely for short-term stock price enhancement.
Purchase of own shares
LONDON, UK / ACCESSWIRE / March 25, 2024 / InterContinental Hotels Group PLC (NYSE:IHG)(LSE:IHG)(OTC PINK:ICHGF)
The Company announces that on 22 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: | 22 March 2024 |
| Aggregate number of ordinary shares purchased: | 8,000 |
| Lowest price paid per share: | £ 80.9000 |
| Highest price paid per share: | £ 81.8200 |
| Average price paid per share: | £ 81.3906 |
The Company intends to cancel the purchased shares.
Following the above transaction, the Company has 164,266,233 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: 8,000 (ISIN: GB00BHJYC057)
Date of purchases: 22 March 2024
Investment firm: GSI
Aggregated information:
London Stock Exchange | Cboe BXE | Cboe CXE | Turquoise | |
Number of ordinary shares purchased | 8,000 | |||
Highest price paid (per ordinary share) | £ 81.8200 | |||
Lowest price paid (per ordinary share) | £ 80.9000 | |||
Volume weighted average price paid(per ordinary share) | £ 81.3906 |
Detailed information:
Transaction Date | Time | Time Zone | Volume | Price (GBP) | Trading Venue | Transaction ID |
22/03/2024 | 08:35:20 | GMT | 58 | 81.3400 | XLON | 960587295103482 |
22/03/2024 | 08:35:20 | GMT | 27 | 81.3800 | XLON | 960587295103477 |
22/03/2024 | 08:35:20 | GMT | 29 | 81.3800 | XLON | 960587295103476 |
22/03/2024 | 08:40:01 | GMT | 61 | 81.4200 | XLON | 960587295104077 |
22/03/2024 | 08:55:07 | GMT | 64 | 81.3800 | XLON | 960587295105783 |
22/03/2024 | 09:00:00 | GMT | 113 | 81.3600 | XLON | 960587295106184 |
22/03/2024 | 09:05:02 | GMT | 10 | 81.2400 | XLON | 960587295106752 |
22/03/2024 | 09:05:02 | GMT | 31 | 81.2400 | XLON | 960587295106753 |
22/03/2024 | 09:08:05 | GMT | 23 | 81.2400 | XLON | 960587295107104 |
22/03/2024 | 09:08:05 | GMT | 27 | 81.2400 | XLON | 960587295107105 |
22/03/2024 | 09:09:15 | GMT | 44 | 81.2600 | XLON | 960587295107230 |
22/03/2024 | 09:12:42 | GMT | 32 | 81.2600 | XLON | 960587295107638 |
22/03/2024 | 09:14:28 | GMT | 43 | 81.2600 | XLON | 960587295107800 |
22/03/2024 | 09:18:01 | GMT | 45 | 81.2200 | XLON | 960587295108187 |
22/03/2024 | 09:23:12 | GMT | 45 | 81.2200 | XLON | 960587295108734 |
22/03/2024 | 09:27:46 | GMT | 11 | 81.2200 | XLON | 960587295109094 |
22/03/2024 | 09:27:46 | GMT | 21 | 81.2200 | XLON | 960587295109095 |
22/03/2024 | 09:27:46 | GMT | 40 | 81.2200 | XLON | 960587295109096 |
22/03/2024 | 09:33:16 | GMT | 46 | 81.2800 | XLON | 960587295109603 |
22/03/2024 | 09:44:31 | GMT | 6 | 81.2600 | XLON | 960587295110563 |
22/03/2024 | 09:44:31 | GMT | 21 | 81.2600 | XLON | 960587295110561 |
22/03/2024 | 09:44:31 | GMT | 35 | 81.2600 | XLON | 960587295110562 |
22/03/2024 | 09:44:31 | GMT | 56 | 81.2600 | XLON | 960587295110556 |
22/03/2024 | 09:55:01 | GMT | 47 | 81.3000 | XLON | 960587295111768 |
22/03/2024 | 09:55:01 | GMT | 63 | 81.3000 | XLON | 960587295111766 |
22/03/2024 | 10:02:45 | GMT | 40 | 81.3800 | XLON | 960587295112464 |
22/03/2024 | 10:12:02 | GMT | 6 | 81.4600 | XLON | 960587295113201 |
22/03/2024 | 10:12:02 | GMT | 61 | 81.4600 | XLON | 960587295113200 |
22/03/2024 | 10:21:00 | GMT | 47 | 81.4000 | XLON | 960587295113934 |
22/03/2024 | 10:25:04 | GMT | 59 | 81.3800 | XLON | 960587295114491 |
22/03/2024 | 10:34:59 | GMT | 31 | 81.2800 | XLON | 960587295115049 |
22/03/2024 | 10:34:59 | GMT | 38 | 81.2800 | XLON | 960587295115048 |
22/03/2024 | 10:46:57 | GMT | 52 | 81.2400 | XLON | 960587295115575 |
22/03/2024 | 10:55:02 | GMT | 83 | 81.2200 | XLON | 960587295116146 |
22/03/2024 | 10:55:02 | GMT | 47 | 81.2600 | XLON | 960587295116137 |
22/03/2024 | 11:11:43 | GMT | 55 | 81.1600 |
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FAQ
When did InterContinental Hotels Group PLC purchase its own shares?
InterContinental Hotels Group PLC purchased its own shares on 22 March 2024.
How many ordinary shares did InterContinental Hotels Group PLC purchase?
InterContinental Hotels Group PLC purchased 8,000 ordinary shares.
At what price did InterContinental Hotels Group PLC purchase its ordinary shares?
InterContinental Hotels Group PLC purchased its ordinary shares at prices ranging from £80.9000 to £81.8200 per share, with an average price of £81.3906 per share.
What is the total number of ordinary shares in issue after the purchase?
After the purchase, InterContinental Hotels Group PLC has 164,266,233 ordinary shares in issue.
Which investment firm facilitated the purchase of InterContinental Hotels Group PLC's shares?
Goldman Sachs International (GSI) facilitated the purchase of InterContinental Hotels Group PLC's shares.
What is the intention of InterContinental Hotels Group PLC regarding the purchased shares?
InterContinental Hotels Group PLC intends to cancel the purchased shares.
Who can be contacted for enquiries related to the purchase of shares by InterContinental Hotels Group PLC?
For enquiries, contact Investor Relations: Stuart Ford, Aleksandar Milenkovic, Joe Simpson, and Media Relations: Mike Ward.
InterContinental Hotels Group Plc
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