Glanbia plc has given the green light to launch a new €50 million share buyback scheme, following on from a similar scheme in recent months.
In its financial results for the first half of 2021 this morning (August 12) – which saw the group deliver a performance “ahead of expectations” and surpass revenues of €2 billion – Glanbia said:
“Shareholders have recently given approval for the group to pursue a share buyback programme following votes at the company’s AGM on May 6, 2021 on Resolutions 10 (purchase of own shares) and 12 (rule 37 waiver).
“99.83% of shareholders and 68.94% of Independent shareholders voted in favour respectively for the company having the authority to execute a share buyback at its discretion.”
To further gauge shareholder sentiment, Glanbia says it consulted with shareholders to better understand the reasons behind the vote, due to the relatively weaker backing of resolution 12.
This consultation took place in June and July 2021 and found that the group’s shareholders were supportive of Glanbia’s capital allocation strategy, the firm says.
“As a result of the strong cash flows in the business, Glanbia is announcing today that it intends to launch a share repurchase programme of up to €50 million.
“The intention is to acquire Glanbia shares on the open market and subsequently cancel them.
“A separate announcement with further details will be made immediately prior to its formal launch.”
The company completed its last €50 million share repurchase programme last April.