Diversified miner Glencore has announced the launch of a share buyback programme valued at $1.5-billion.
The company said on February 24 that the programme would be conducted in accordance with the authority granted by shareholders at the 2022 annual general meeting (AGM) and was subject to market conditions, with completion expected by the time the company announced its interim results in August.
The purpose of the programme is to reduce the capital of the company and any shares bought will be held in treasury. The programme will be subject to shareholder approval at the 2023 AGM and will continue on those terms.
Glencore has entered into an agreement with financial services company UBS to initially conduct the programme. Trading decisions may be undertaken by the bank in accordance with the directions of the company.
If the company is unable to do so, the bank will make trading decisions concerning purchases under the programme independently of the company. The bank may also undertake transactions in the shares, which may include sales as well as purchases and could include participation in block purchases to meet the obligations of the agreement.
Glencore expects the announcement of the share buyback programme to have a positive impact on the company’s share price, as the group is confident about its financial health and future prospects.
It also provides an opportunity for shareholders to sell their shares at a premium if they choose to participate in the buyback programme.