LONDON - Prudential (LON:PRU) plc, a life insurance and asset management company, announced the commencement of a share repurchase program aimed at mitigating the dilutive effect of its recent share issuances. The company plans to buy back approximately 2.8 million ordinary shares, which represents about 0.11% of its issued share capital, as disclosed on November 15, 2024.
The repurchase initiative, set to start on November 25, 2024, and conclude by November 29, 2024, involves an aggregate maximum expenditure of GBP 18.3 million. This move is intended to counterbalance the dilution caused by shares issued for the scrip dividend alternative related to the 2024 first interim dividend and the vesting of options under the employee share scheme during the latter half of the year.
Merrill Lynch International has been contracted to execute the repurchases on behalf of Prudential, with transactions occurring on the London Stock Exchange (LON:LSEG) and other trading venues. The repurchased shares are expected to be canceled, contributing marginally to an enhancement of earnings per share.
The share repurchase is part of a broader strategy by Prudential, which includes potential future buybacks to offset additional scrip dividend issuances and dilution from employee and agent share schemes. This program aligns with the general authority granted by shareholders at the 2024 Annual General Meeting, allowing for the purchase of up to 274,967,019 ordinary shares.
Prudential has stated that the repurchase will be conducted within the parameters of the Market Abuse Regulation and the UK Listing Rules, as well as the Hong Kong Listing Rules and the Hong Kong Code on Share Buy-backs. The company has clarified that no purchases will be made on the Hong Kong Stock Exchange nor will any repurchases involve the company's American Depositary Receipts.
Further announcements will follow any repurchase of shares, although there is no guarantee that the program will be fully implemented or that any shares will be repurchased.
Prudential plc, which has primary listings on the Hong Kong and London stock exchanges, operates in 24 markets across Asia and Africa, providing life and health insurance as well as asset management services. The company emphasizes that it is not affiliated with Prudential Financial (NYSE:PRU), Inc. in the United States or The Prudential Assurance Company Limited in the United Kingdom (TADAWUL:4280).
This article is based on a press release statement from Prudential plc.
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