InterContinental Hotels Group PLC Announces Transaction in Own Shares - April 11
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Insights
The announcement of a share buyback and subsequent cancellation by a publicly traded company is a significant event, often indicating management's confidence in the company's intrinsic value and financial health. In this case, the repurchase of 168,020 ordinary shares at a price range between £78.4200 and £79.2600 per share represents a substantial investment back into the company. This action can be interpreted as a signal to the market that the company believes its shares are undervalued, which could potentially lead to a positive market reaction and an increase in the stock price.
From a financial perspective, the reduction in the number of shares outstanding will increase the earnings per share (EPS), assuming net income remains constant. This is because the same amount of profit is now divided among fewer shares. However, it is essential to consider the opportunity cost of the capital used for the share buyback. The company has chosen to allocate a significant amount of capital to repurchase shares rather than investing in growth opportunities or paying down debt. Investors should assess the company's long-term strategy and the potential impact of this capital allocation decision on future growth prospects.
Share repurchase programs are often well-received by the investor community as they can be indicative of a company's robust cash position and commitment to returning value to shareholders. The timing and scale of such buybacks can also reflect the company's market outlook and its assessment of internal investment opportunities. For InterContinental Hotels Group PLC, a global hospitality company, the cancellation of shares may also be aimed at optimizing capital structure, especially in an industry that has faced significant challenges and volatility due to factors like travel restrictions and economic fluctuations.
It's also worth considering the broader market implications of such a buyback. If other companies in the hospitality sector or related industries are engaging in similar activities, it might suggest a trend where these businesses are looking to enhance shareholder value in the absence of immediate expansion opportunities. This could indicate a mature industry cycle or a strategic shift towards consolidation and efficiency rather than growth through acquisition or capital expenditures.
Purchase of own shares
LONDON, UK / ACCESSWIRE / April 11, 2024 / The Company announces that on 10 April 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: | 10 April 2024 |
| Aggregate number of ordinary shares purchased: | 168,020 |
| Lowest price paid per share: | £ 78.4200 |
| Highest price paid per share: | £ 79.2600 |
| Average price paid per share: | £ 78.8771 |
The Company intends to cancel the purchased shares.
Following the above transaction, the Company has 163,717,139 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: 168,020 (ISIN: GB00BHJYC057)
Date of purchases: 10 April 2024
Investment firm: GS
Aggregated information:
London Stock Exchange | Cboe BXE | Cboe CXE | Turquoise | |
Number of ordinary shares purchased | 84,083 | 52,000 | 23,861 | 8,076 |
Highest price paid (per ordinary share) | £ 79.2600 | £ 79.2400 | £ 79.2200 | £ 79.2200 |
Lowest price paid (per ordinary share) | £ 78.4400 | £ 78.4400 | £ 78.4400 | £ 78.4200 |
Volume weighted average price paid(per ordinary share) | £ 78.8948 | £ 78.8352 | £ 78.9015 | £ 78.8919 |
Click on, or paste the following link into your web browser, to view the full announcement.
http://www.rns-pdf.londonstockexchange.com/rns/1097K_1-2024-4-10.pdf
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
SOURCE: InterContinental Hotels Group PLC
View the original press release on accesswire.com
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