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Housing and care service specialist Mears Group (LSE:MER) unveiled a new share buyback program on Thursday, with a total value of up to £20 million. This marks the company’s fourth buyback initiative within the past 18 months.
The London-listed firm outlined that the new program is designed to return surplus capital to shareholders. The previous three buyback schemes resulted in the acquisition and cancellation of 17.7 million shares. These shares were purchased at an average price of 299.7p each, amounting to a capital return of £53.2 million. Additionally, Mears Group’s employee benefit trust acquired 5.1 million shares during this period to support share-based employee remuneration. Out of these, 4.5 million shares are still held for future use.
The company has partnered with Deutsche Numis and Panmure Liberum to execute the new buyback program. These financial firms will handle the repurchase process independently, following predetermined terms and adhering to market regulations. The repurchased shares will be canceled, which will reduce Mears Group’s share capital.
This approach is part of Mears Group’s strategy to enhance shareholder value by returning excess capital. The buyback reflects the company’s strong financial position and commitment to delivering value to its investors.
As of 10:43 BST, Mears Group shares were up by 0.72%, reaching a price of 371.15p. This increase in share price reflects positive market sentiment regarding the company’s financial health and strategic actions. The new buyback program is expected to further boost investor confidence and reinforce the company’s shareholder value proposition.
