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LONDON - Drax Group PLC (LSE:LON:DRX), a British electrical power generation company, announced today the commencement of the fourth and final tranche of its share buyback program, with a maximum expenditure of $75 million. This move follows the successful completion of the third tranche on Sunday, which was part of a broader £300 million buyback initiative first unveiled on July 26, 2024.
Since the program’s inception, Drax has repurchased approximately 36.1 million shares, amounting to roughly £225 million. The latest tranche aims to further reduce the company’s share capital, with repurchased shares to be held in treasury until they are either canceled or reissued.
Under the fourth tranche, Drax may acquire up to 33,469,342 shares, a limit set by shareholder authorization at the Annual General Meeting on May 1, 2025, and adjusted for shares bought back since that date.
The buyback transactions will be conducted on the open market, influenced by prevailing market conditions, share price, and trading volumes. Drax has engaged J.P. Morgan Securities plc to manage these transactions under a non-discretionary agreement, allowing the financial firm to act as a riskless principal in buying shares independently from the company.
This arrangement complies with the UK Financial Conduct Authority’s Listing Rules and Drax’s general authority for share repurchase. The company has stated that it will provide updates following the execution of share buybacks, but there is no certainty that the program will be fully realized.
The information for this article is based on a press release statement from Drax Group PLC.
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