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Vodafone Group Plc (LSE:VOD) has unveiled plans to initiate a share repurchase programme valued at up to €500 million. The initiative aims to repurchase ordinary shares, each valued at US$0.20 20/21, with the primary goal of reducing the company’s share capital.
Details of the Repurchase Programme
Vodafone has mandated Goldman Sachs International (GSI) to manage the purchase of ordinary shares. Acting as a riskless principal, GSI will carry out the purchases starting from 7 August 2024 until no later than 29 November 2024.
The shares will be bought on the London Stock Exchange and other Multilateral Trading Facilities, in compliance with the Directive 2014/65/EU on markets in financial instruments, as adapted in the UK post-Brexit. The repurchase will adhere to the Listing Rules and the authority granted at Vodafone's 2024 Annual General Meeting (AGM), which permits the company to repurchase up to 4,053,092,397 ordinary shares.
Purpose and Impact
The primary purpose of this programme is to reduce Vodafone’s share capital. The ordinary shares acquired by GSI will be resold to Vodafone, held as treasury shares, and subsequently either cancelled or used for employee share awards.
Strategic Considerations
This share repurchase programme reflects Vodafone's strategy to enhance shareholder value by reducing the number of shares in circulation, potentially increasing the value of remaining shares.
By committing up to €500 million for the share repurchase, Vodafone demonstrates its robust financial position and confidence in its future prospects.
