One of estate agency’s biggest groups yesterday announced the start of a share buyback programme for a tranche of up to £10 million.
LSL Property Services, which owns brands such as Your Move, Reeds Rains and Marsh & Parsons, as well as e.surv Chartered Surveyors, says it has appointed its broker Numis Securities Limited to manage the ‘non-discretionary’ share buyback programme to repurchase ordinary shares on its behalf up to a maximum consideration of £10 million.
This, the company says, is for a period starting yesterday and ending no later than June 30 2022. The return of excess capital to shareholders through the Share Buyback Programme will be funded by cash resources, it added.
In a note to the London Stock Exchange announcing the programme, it said:
“The Share Buyback Programme will be conducted in accordance with the Company's general authority to purchase up to a maximum of 10,515,895 ordinary shares, granted by shareholders at its AGM on 23 June 2021, and the continuation of the Share Buyback Programme will be subject to the renewal by the shareholders of the repurchase general authority at the Company's forthcoming AGM on 27 May 2022.
The Share Buyback Programme will also be effected within the parameters prescribed by the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU (each as in force in the UK, from time to time, including, where relevant, pursuant to the UK's Market Abuse (Amendment) (EU Exit) Regulations 2019) ("MAR").
Share repurchases will be made on the Company's behalf and in accordance with the arrangement with Numis in open market transactions, depending on market conditions, share price and trading volume.
The maximum price paid per ordinary share will be limited to be no more than the higher of (i) 105 per cent of the average middle market closing price of the Company's ordinary shares for the five business days before the purchase is made, and (ii) the higher of the price of the last independent trade and the highest current independent bid on the trading venue where the purchase is carried out. It is intended that the repurchased share be held in treasury. Such treasury shares are not entitled to dividends and have no voting rights at the Company's general meetings.”
Last month, Foxtons launched a £3 million share buy back programme, representing a major windfall for its investors.