25th Apr 2019 14:51
LONDON (Alliance News) - Stagecoach Group PLC on Thursday announced a share buyback programme for up to GBP60 million.
The FTSE 250 transport operator said that it will repurchase a maximum of 50 million shares, and attempt to complete the buyback over the next 12 months.
Stagecoach has entered agreements with Deutsche Bank AG and RBC Capital Markets to conduct the programme on the group's behalf, while both firms have the authority to purchase share under programme independently.
"The Stagecoach board believes that following the recent announcements regarding UK Rail coupled with the completion of the sale of the North America business, it is an appropriate use of our cash at this time to buy back our own equity," the group said in a statement.
Earlier in April, Stagecoach had been disqualified from applying for all three UK rail franchise competitions, due to submitting non-compliant bids related to pension risks.
Shares in Stagecoach were up 3.7% at 119.81 pence on Wednesday.
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