Transaction in Own Shares
- None.
- None.
Insights
Share buybacks are a significant financial event that directly impacts the equity structure and capital allocation of a company. In the case of Shell plc, the repurchase of shares for cancellation can be indicative of the company's confidence in its own financial health and future prospects. By reducing the number of shares outstanding, such buybacks typically aim to increase earnings per share (EPS), potentially leading to a more favorable valuation of the company's stock. However, the capital used for share repurchases is capital not invested elsewhere, such as in business expansion or debt reduction, which could have other benefits for the company and its shareholders.
The execution of Shell's share buyback program within the parameters set by regulatory frameworks like EU MAR and UK MAR ensures compliance and transparency, which is critical for maintaining investor trust. The involvement of an independent third party, Citigroup Global Markets Limited, to make trading decisions minimizes the risk of market manipulation and aligns with best practices in corporate governance. The market's reaction to share buybacks can vary; while some investors may view buybacks as a positive signal about the company's valuation, others may be concerned about the opportunity cost of not investing the capital into growth opportunities.
The legal complexities of share buybacks are significant, especially for a company like Shell plc that operates under multiple regulatory regimes post-Brexit. The adherence to EU MAR, UK MAR and the EU MAR Delegated Regulation demonstrates the company's commitment to legal compliance in its capital operations. It's important for investors to understand that such compliance ensures the legitimacy of the buyback program and mitigates legal risks that could arise from non-compliance, which could have adverse effects on the company's reputation and stock price.
Transaction in Own Shares
7 March, 2024
• • • • • • • • • • • • • • • •
Shell plc (the ‘Company’) announces that on 7 March 2024 it purchased the following number of Shares for cancellation.
Aggregated information on Shares purchased according to trading venue:
| Date of purchase | Number of Shares purchased | Highest price paid | Lowest price paid | Volume weighted average price paid per share | Venue | Currency |
| 07/03/2024 | 800,000 | LSE | GBP | |||
| 07/03/2024 | - | Chi-X (CXE) | GBP | |||
| 07/03/2024 | - | BATS (BXE) | GBP | |||
| 07/03/2024 | 850,000 | XAMS | EUR | |||
| 07/03/2024 | - | CBOE DXE | EUR | |||
| 07/03/2024 | - | TQEX | EUR |
These share purchases form part of the on- and off-market limbs of the Company's existing share buy-back programme previously announced on 1 February 2024.
In respect of this programme, Citigroup Global Markets Limited will make trading decisions in relation to the securities independently of the Company for a period from 1 February 2024 up to and including 26 April 2024.
The on-market limb will be effected within certain pre-set parameters and in accordance with the Company’s general authority to repurchase shares on-market. The off-market limb will be effected in accordance with the Company’s general authority to repurchase shares off-market pursuant to the off-market buyback contract approved by its shareholders and the pre-set parameters set out therein. The programme will be conducted in accordance with Chapter 12 of the Listing Rules and Article 5 of the Market Abuse Regulation 596/2014/EU dealing with buy-back programmes (“EU MAR”) and EU MAR as “onshored” into UK law from the end of the Brexit transition period (at 11:00 pm on 31 December 2020) through the European Union (Withdrawal) Act 2018 (as amended by the European Union (Withdrawal Agreement) Act 2020), and as amended, supplemented, restated, novated, substituted or replaced by the Financial Services Act, 2021 and relevant statutory instruments (including, The Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310)), from time to time (“UK MAR”) and the Commission Delegated Regulation (EU) 2016/1052 (the “EU MAR Delegated Regulation”) and the EU MAR Delegated Regulation as “onshored” into UK law from the end of the Brexit transition period (at 11:00 pm on 31 December 2020) through the European Union (Withdrawal) Act 2018 (as amended by the European Union (Withdrawal Agreement) Act 2020), and as amended, supplemented, restated, novated, substituted or replaced by the Financial Services Act, 2021 and relevant statutory instruments (including, The Market Abuse (Amendment) (EU Exit) Regulations (SI 2019/310)), from time to time.
In accordance with EU MAR and UK MAR, a breakdown of the individual trades made by Citigroup Global Markets Limited on behalf of the Company as a part of the buy-back programme is detailed below.
Enquiries
Media International: +44 (0) 207 934 5550
Media Americas: +1 832 337 4335
LEI number of Shell plc: 21380068P1DRHMJ8KU70
Classification: Acquisition or disposal of the issuer’s own shares
Attachment
FAQ
How many shares did Shell plc purchase for cancellation on 7 March 2024?
Who will make trading decisions for Shell plc's share buy-back program until 26 April 2024?
In which venues did Shell plc purchase shares on 7 March 2024?
What regulations govern Shell plc's share buy-back program?
