BAE Systems launches second tranche of £1.5bn share buy-back program

Published 01/07/2025, 07:48
BAE Systems launches second tranche of £1.5bn share buy-back program

LONDON - Defense contractor BAE Systems (LON:BAES) plc announced Tuesday it has commenced the second tranche of its three-year share buy-back program, allocating up to £500 million for repurchasing company shares through June 2026.

The company has instructed Morgan Stanley & Co (NYSE:MS). International plc to conduct on-market purchases of ordinary shares as part of the broader £1.5 billion share repurchase initiative first announced in August 2023.

According to the statement, all shares purchased will be canceled, with the explicit purpose of reducing the company’s share capital. The second tranche is scheduled to be completed by June 30, 2026.

The repurchase will be executed within pre-established parameters and in accordance with the company’s general authority to repurchase shares, which was granted by shareholders at BAE Systems’ annual general meeting on May 7, 2025.

The maximum number of ordinary shares that may be repurchased under this second tranche is limited to 300,785,866 shares, as authorized under the company’s 2025 shareholder approval.

The buy-back will comply with applicable UK Listing Rules and relevant regulations, including the Market Abuse Regulation and Commission Delegated Regulation as incorporated into UK domestic law following Brexit.

This announcement follows the completion of the first tranche of the company’s multi-year share repurchase program, based on information provided in the press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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