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ContourGlobal PLC (GLO)

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Tuesday 30 June, 2020

ContourGlobal PLC

Extension of Share Buyback Programme

RNS Number : 5402R
ContourGlobal PLC
30 June 2020
 

For immediate release

 

 

30 June 2020

ContourGlobal plc ("ContourGlobal" or the "Company")

 

ContourGlobal announces extension of Share buyback programme

 

 

On 1 April 2020 ContourGlobal announced a buyback programme of up to £30 million of ContourGlobal plc ordinary shares of £0.01 each ("Shares"), to initially run from 1 April 2020 to 30 June 2020 (the "Initial Buyback Period"). During the Initial Buyback Period, 3,508,239 million Shares were repurchased at an average price of 155.9 pence per Share and total cost of £5.5 million, with 667,204,681 Shares remaining in issue.

 

Today the Company announces that it has entered into an extension agreement with Investec Bank plc ("Investec") to continue the buyback programme from 30 June 2020 to 30 September 2020 (the "Extended Buyback Programme"). Under the terms of the Extended Buyback Programme, the maximum number of Shares that may be repurchased by the Company is 12,900,0001 and, absent a change in the Company's free float, the current maximum number of shares which can be bought back is 5,300,000[1]. Investec will act as principal in relation to the purchase of the Shares and subsequent on sale of such Shares to the Company. Under the terms of the agreement, Investec w ill make purchases of the Shares under the Extended Buyback Programme independently of, and uninfluenced by, ContourGlobal. Any Shares repurchased will be held in treasury pending cancellation or re-issue.

 

The Company also announces that the number of Shares  which are deemed by the Listing Rules to be held as shares in public hands (the "Company Free Float") is currently below the minimum 25% threshold, largely as a consequence of recent shareholder purchases.[2]  The Financial Conduct Authority ("FCA") has granted the Company a temporary dispensation under the relevant Listing Rules and has permitted a minimum shares in public hands of 20% of the Company's issued ordinary share capital, equivalent to approximately 133.4 million Shares as at the date of this announcement, effective for a 12-month period until and including 25 June 2021.  

 

Any purchases of Shares contemplated by this announcement will be effected within certain pre-set parameters agreed between ContourGlobal and Investec. These arrangements will be in accordance with the Company's general authority to repurchase shares granted by ContourGlobal's shareholders at the 2020 annual general meeting under Resolution 18 of that meeting, Chapter 12 of the UK Listing Authority's Listing Rules and the relevant provisions of Market Abuse Regulation (EU) 596/2014 and the Commission Delegated Regulation (EU) 2016/1052. The purpose of the programme is to reduce the Company's issued share capital.

 

Joseph Brandt, Chief Executive said "Our diversified business model, strong balance sheet and underlying cash flows continue to enable ContourGlobal to perform well during unprecedented times.  The share price does not reflect the value and resilience of the underlying business and we think it is in the interests of all shareholders to continue our share buyback programme."

 

 

About ContourGlobal

ContourGlobal is listed on the premium segment of the London Stock Exchange (TKR: GLO). ContourGlobal is an international owner and operator of contracted wholesale power generation businesses with approximately 4,844 MW in operation in 18 countries. ContourGlobal operates a portfolio of 107 thermal and renewable power plants across Europe, Latin America, and Africa utilizing a wide range of technologies.

 

ENQUIRIES

 

Investor Relations - ContourGlobal

John Smelt

Tel: +44 (0) 203 626 9047

Mob: +44 (0) 7500 129 218

[email protected]

 

 

Media - Brunswick

Charles Pretzlik/Simon Maine

Tel: +44 (0) 207 404 5959

[email protected]

 

 

 

 

ENDS

 

 

[1] Based on closing share price of 190 pence on 29 June 2020 and an initial programme of £30 million

[2] The Listing Rules provide that shares are not considered to be held in public hands if, among other things, they are held by persons who have an interest in 5% or more of a listed company's share capital. An independent institutional shareholder acquired additional shares which caused their interest to exceed the 5% threshold and thereby, pursuant to the Listing Rules, caused their entire position to be excluded from the Company's free float.  As a result, for the purposes of the Listing Rules, the Shares in public hands currently stands at 20.8% or approximately 138.8 million Shares as at the date of this announcement.

 


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