National Grid begins share buyback programme

National Grid announced the start of a new share buyback programme on Monday, as part of its plan to manage the dilution resulting from the take-up of its scrip dividend.

The FTSE 100 firm said the irrevocable and non-discretionary programme would purchase ordinary shares in the capital of the company, starting from Tuesday and ending no later than 14 April.

"The buyback programme will be managed by an independent third party, which makes its trading decisions independently of, and uninfluenced by, the company and is capable of continuing during close periods," National Grid's board confirmed.

"The purchased shares will be held as treasury shares," it added.

Any purchases by the company would be effected within certain pre-set parameters, the board said, and in accordance with both the company's general authority to purchase shares granted by shareholders at the 2015 Annual General Meeting, and chaper 12 of the Listing Rules.