4th Oct 2021 10:02
(Alliance News) - Frasers Group PLC on Monday announced plans for a buyback of up to GBP70.0 million.
The share repurchase programme kicks off on Monday and runs until December 10, the day of the Sports Direct owner's interim results
The maximum number of shares it is able to repurchase during the programme is 10.0 million.
"The purpose of the programme is to reduce the share capital of the company," Frasers said.
There are changes afoot at the upper echelons of the retailer's management. The company in August announced founder Mike Ashley will step down from the chief executive role.
Ashley will move to an executive director role, paving the way for future son-in-law Michael Murray to become the company's new boss.
Last week, Frasers said Murray will start the role at the start of May next year. The company also confirmed an executive share scheme was approved at the company's annual general meeting.
It noted the measure would have been approved even if the votes of Ashley and his holding companies had not been included.
Back in August, Frasers had set out pay plans for incoming CEO Murray. The proposed share option scheme for Murray has a target price of GBP15, which must be achieved for 30 consecutive trading days before the vesting period ends on October 7, 2025.
Should the options vest, and the share price on exercise be GBP15, Murray will be awarded shares to the equivalent value of GBP100 million before tax.
Shares in the company were down 6.7% at 621.50 pence each in London on Monday morning, the worst performing FTSE 250 stock.
By Eric Cunha; [email protected]
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