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.
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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.