Travis Perkins’ (TPK) stock rises on share buyback plan
By Rob Griffin
10:37, 14 December 2021
Travis Perkins saw its stock price rise during early trading today after announcing it was extending its £100m ($132m) share buyback programme by a further £70m.
In a statement, the UK builders’ merchant said the capital would be returned through the purchase of the company’s ordinary shares.
A full update on the programme, which was triggered by the disposal of its plumbing and heating distribution business, will be given at its full-year results in March 2022.
Stock price rises
The positive news was enough to have lifted the FTSE 250 company’s share price by 1.25% to £15.09 by 10am on the London markets.
Travis Perkins also reported that it had bought back 3,810,335 ordinary shares for a total consideration of approximately £58m since the beginning of October 2021.
The extended buyback, which brings the total value of the programme to £170m, begins today and ends no later than 23 June 2022, unless otherwise decided.
“The sole purpose of the programme is to reduce Travis Perkins’ share capital,” noted the statement. “The maximum number of shares to be acquired under the programme is 22,502,592.”
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Proceeds from plumbing division sale
The original share buyback programme was announced at the back end of September 2021, following the completion of the plumbing and heating division disposal.
In a statement issued at the time, Travis Perkins said the net proceeds would be returned to shareholders through a combination of a special dividend and a share buyback programme.
“Travis Perkins will pay a special dividend of approximately £79m in aggregate, representing 35p per ordinary share,” it added.
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