7th Feb 2019 08:21
LONDON (Alliance News) - Diageo PLC on Thursday said it has entered into an agreement with Citigroup Global Markets Ltd to execute the second tranche of its share buyback programme.
On Wednesday last week, the FTSE 100-listed beer and spirits maker's shareholders approved an increase to the share buyback programme taking place during the financial year to the end of June. This programme will now return up to GBP3.0 billion to shareholders.
The first tranche of 47.9 million shares, worth GBP1.3 billion, was completed last week.
Diageo on Thursday said it will now commence the second tranche and will buy back up to 246.1 million shares, totalling GBP1.7 billion.
The stock was trading 1.0% higher on Thursday at 2,955.00 pence a share.
Diageo said Citi will make its trading decisions in relation to the company's securities independently of the company.
The Johnnie Walker whisky maker said the purpose of the buyback programme is to reduce its share capital, therefore all shares repurchased will be cancelled.
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