8th Jul 2019 08:57
(Alliance News) - Imperial Brands PLC on Monday launched a GBP200 million share buyback programme, as part of a revised shareholders distributions and capital allocation policy.
Shares in the tobacco company were trading 2.3% higher at 2,005.00 pence each in morning trade.
The maker of Davidoff and Gauloises Blondes cigarettes said the new policy will recognise the importance of growing dividends while providing greater flexibility in capital allocation.
Imperial Brands reaffirmed plans for 10% final dividend growth for the financial year ending September 30 and said dividends thereafter will be progressive, growing annually from the current level while considering underlying business performance.
Under the revised capital allocation policy, the company expects to continue investing in organic opportunities in traditional tobacco products and Next Generation Products, marketed under its Blu brand. It also plans to invest in targeted mergers and acquisitions to expand its NexGen products portfolio, which is comprised of vapour, heated tobacco, and oral nicotine products.
Imperial Brands said its GBP2 billion divestment programme remains on track to complete before May 2020. The company plans to assess the most appropriate use of proceeds at the time including debt reduction and share buybacks.
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