Share Buyback Programme
Updated : 07:01
22 October 2024
DRAX GROUP PLC
(Symbol: DRX)
Share Buyback Programme
On 7 August 2024, Drax Group plc (the "Company") announced that in connection with the up to £300 million share buyback programme announced on 26 July 2024 (the "Programme"), it was commencing the first tranche of a share buyback programme to purchase ordinary shares of 11 16/29 pence each in the Company up to a maximum consideration of £75 million (the "First Tranche"). As at 21 October 2024, the Company had repurchased 9,031,476 shares for a consideration of c.£59 million. The First Tranche of the Programme is therefore over 75% completed.
The Company is today confirming that the second tranche of the Programme to purchase ordinary shares in the Company of up to a maximum consideration of £75 million (the "Second Tranche") will commence immediately following the conclusion of the First Tranche.
The purpose of the Second Tranche is to reduce the Company's share capital. The ordinary shares purchased by the Company will be held in treasury pending cancellation or re-issue.
Ordinary share purchases as part of the Second Tranche of the Programme will take place in open market transactions and may be made from time to time depending on market conditions, share price and trading volumes. The maximum number of shares that may be repurchased by the Company under the Second Tranche of the Programme is 29,436,781, being the number of shares the Company is authorised to purchase pursuant to the authority granted by shareholders at the AGM on 25 April 2024 less the shares acquired under the First Tranche. The Company expects the required authority will be renewed at the AGM to be held in 2025.
The Company has entered into a non-discretionary agreement with RBC Europe Limited ("RBC") pursuant to which it has issued irrevocable instructions to RBC to conduct the Second Tranche of the Programme. RBC will carry out the Second Tranche of the Programme through the acquisition of ordinary shares in the Company within certain pre-defined parameters for subsequent repurchase by the Company. Any purchase of ordinary shares in the Company will be conducted within the parameters prescribed by the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052 (also as in force in the UK, from time to time, including, where relevant, pursuant to the UK's European Union (Withdrawal) Act 2018 and the Market Abuse (Amendment) (EU Exit) Regulations 2019) as well as applicable laws and the regulations of the UK Financial Conduct Authority (including Chapter 9 of the UK Listing Rules).
The Company will make further announcements in due course following the buyback of shares. Note there is no guarantee that the Programme will be implemented in full.
Capitalised terms relate to the Company's announcement on 7 August 2024 unless specified otherwise.
Enquiries:
Drax Investor Relations: Mark Strafford
+44 (0) 7730 763 949
Media:
Drax External Communications: Andy Low
+44 (0) 7841 068415
RBC Europe Limited:
James Agnew / Jack Wood
+44 (0) 20 7404 5959
Website: www.drax.com
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