Rolls-Royce launches £1 billion share buyback program

Published 27/02/2025, 08:10
Rolls-Royce launches £1 billion share buyback program

LONDON - Rolls-Royce (OTC:RYCEY) Holdings plc has initiated a share buyback program to repurchase up to £1 billion of its shares, the company announced today. The program is set to begin immediately and is expected to be completed by December 31, 2025.

Under the terms of the program, Rolls-Royce has entered into an agreement with UBS AG London Branch to conduct market purchases on its behalf. UBS will operate as a riskless principal and make independent trading decisions within agreed parameters. The transactions will take place on the London Stock Exchange (LON:LSEG) or another recognized investment exchange.

The repurchased shares will either be cancelled or used to fulfill obligations under Rolls-Royce’s employee share plans, thus reducing the company’s share capital. The number of shares that can be acquired is capped at 841,669,698, a figure authorized by shareholders during the company’s Annual General Meeting on May 23, 2024.

Rolls-Royce’s buyback program aligns with the authority granted at the 2024 Annual General Meeting and is compliant with relevant regulations, including the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052, as well as Chapter 9 of the Financial Conduct Authority’s UK Listing Rules.

The company has stated that any share repurchases under this program will be publicly announced by 7:30 a.m. on the business day following the repurchase.

This share buyback initiative is part of Rolls-Royce’s strategy to deliver value to its shareholders and manage its capital effectively. The current authority to buy back shares will expire on June 30, 2025, or at the 2025 Annual General Meeting, whichever is earlier, where the company anticipates seeking renewal of the authority.

This move comes as Rolls-Royce continues to navigate the complexities of the global market, aiming to optimize its financial structure and reward shareholders. The information provided is based on a press release statement from Rolls-Royce Holdings 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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