Inchcape launches £250 million share buyback

Published 04/03/2025, 08:04
Inchcape launches £250 million share buyback

LONDON - Inchcape (OTC:INCPY) PLC, a prominent global automotive distributor, announced the commencement of a share buyback program to repurchase up to £250 million of its shares. The program aligns with the company’s capital allocation policy, which includes a commitment to ongoing share buybacks, alongside dividend payments set at 40% of adjusted earnings per share (EPS).

The decision to initiate the buyback follows the company’s strong free cash flow performance in the fiscal year 2024 and its robust balance sheet. The program, revealed in conjunction with Inchcape’s FY 2024 financial results, is designed to operate within the company’s self-imposed leverage limit, maintaining net debt at no more than one times its EBITDA.

Inchcape has engaged Jefferies International Limited to manage the buyback, which will be executed within specific parameters on the open market, contingent on factors such as market conditions and share price. The maximum number of shares targeted in the buyback is 22,187,600, a figure that could increase subject to shareholder authorization at the upcoming Annual General Meeting on May 15, 2025.

The buyback program is set to unfold over the next 12 months, with the possibility of share purchases even during closed periods. The primary objective of the program is to reduce the company’s capital, with the intention to cancel all acquired ordinary shares.

The buyback will adhere to regulatory frameworks, including Article 5(1) of the Market Abuse Regulation (EU) No 596/2014, which remains part of UK law post-Brexit, and the UK Listing Rules by the Financial Conduct Authority.

This strategic move reflects Inchcape’s confidence in its financial stability and commitment to delivering shareholder value. The information on this share buyback program is based on a press release statement from Inchcape PLC.

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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