Transaction in Own Shares
- None.
- None.
Insights
Share repurchases are a significant event for investors as they can signal a company's confidence in its own financial stability and future prospects. Shell plc's announcement of a buy-back of over 2 million shares could indicate that the company perceives its stock to be undervalued or that it is seeking to return capital to shareholders in an efficient manner. The repurchase will reduce the number of shares outstanding, potentially increasing earnings per share and the intrinsic value for existing shareholders. However, the impact on the stock price will depend on market perception and the overall demand for Shell shares.
Investors should also consider the financial health of the company, including its cash reserves and debt levels, to assess whether the buy-back is a prudent use of funds. Additionally, the timing and price of the buy-back, conducted within the parameters set by regulatory bodies, are crucial. The volume weighted average price paid per share provides an indication of the cost of the buy-back to the company and the value proposition for remaining shareholders.
The strategy behind Shell's share repurchase must be analyzed within the context of current market conditions and the energy sector's performance. The repurchase could be part of a broader capital allocation strategy that includes investment in growth opportunities and dividend payments. It's essential to analyze how this buy-back aligns with Shell's long-term strategic goals, especially in a transitioning energy market that is increasingly focusing on sustainable and renewable sources.
Moreover, the share buy-back announcement could have implications for investor sentiment and market liquidity. It can serve as a signal to the market, potentially affecting the stock's trading volume and volatility. As Shell operates within a highly regulated industry, compliance with the Market Abuse Regulation and its UK equivalent ensures transparency and fairness in the execution of the buy-back, which is crucial for maintaining investor trust.
From a legal standpoint, Shell's share repurchase is conducted under the strict regulations of the EU Market Abuse Regulation (MAR) and the UK equivalent post-Brexit. These regulations are designed to prevent market manipulation and insider trading, ensuring that transactions are carried out transparently and do not unfairly influence market prices. The detailed disclosure of trades by Citigroup Global Markets Limited, acting independently of Shell, is a compliance measure to satisfy these regulations.
The legal framework governing such buy-backs, including the Financial Services Act 2021 and related statutory instruments, provides a structured approach to market transactions. Shell's adherence to these regulations is critical to avoid legal repercussions and to maintain corporate governance standards. Investors should be reassured by the company's compliance with these complex legal requirements, which reflect its commitment to ethical business practices.
Transaction in Own Shares
7 February, 2024
• • • • • • • • • • • • • • • •
Shell plc (the ‘Company’) announces that on 7 February 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 |
| 07/02/2024 | 1,030,000 | LSE | GBP | |||
| 07/02/2024 | - | Chi-X (CXE) | GBP | |||
| 07/02/2024 | - | BATS (BXE) | GBP | |||
| 07/02/2024 | 1,019,968 | XAMS | EUR | |||
| 07/02/2024 | - | CBOE DXE | EUR | |||
| 07/02/2024 | - | 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?
What was the highest price paid for the shares?
What is the duration of Shell plc's existing share buy-back program?
Who is managing Shell plc's share buy-back program?
What regulations is Shell plc's share buy-back program conducted in accordance with?
