Smith & Nephew divests gynaecology, announces share buyback

Global medical technology business Smith & Nephew announced on Monday that it has completed the divestiture of its gynaecology business to Medtronic, for $350m.

The FTSE 100 firm said the sale of its gynaecology business demonstrates its “disciplined strategic approach” to capital deployment.

“Our shareholders will benefit directly through a $300m share buy-back programme,” Smith & Nephew’s board said in a statement.

“The divestment is expected to be broadly neutral to adjusted earnings per share in 2017, after the share buy-back, and to reduce EPSA by less than one cent in 2016.”

Smith & Nephew said the maximum pecuniary amount allocated to the buy-back programme is $300m and the maximum number of shares that will be purchased is estimated to be 18.3 million, based on the prevailing share price and GBP/USD exchange rate.

It confirmed the buy-back programme was starting on Monday and will end no later than 31 March 2017.