22nd Jul 2019 08:22
(Alliance News) - Whitbread PLC on Monday said it will return GBP2 billion to shareholders through a 40.2 million share tender offer at 4,972 pence per share.
The deal completes the FTSE 100-listed hospitality company's GBP2.5 billion capital return programme, which includes both the tender offer and prior buyback programme.
The number of tendered shares equates to roughly 21% of Whitbread's issued share capital and the strike price is the average volume-weighted average price plus 2% of average volume-weighted average price.
The offer becomes unconditional on Tuesday this week and was oversubscribed. No further capital returns are planned, as the company has hit its GBP2.5 billion target.
"Whitbread has previously announced its plans to return GBP2.5 billion surplus capital to shareholders, unless more value creating alternatives arose. The first phase was a share buyback programme conducted from [January 17 to May 10]. This first phase completed with a total of GBP482 million of ordinary shares repurchased," the company said.
"The second phase is the tender offer, which will result in GBP2 billion of ordinary shares being repurchased. This means the total returned to date is GBP2.5 billion and, therefore, the company is not planning any further returns of capital."
Shares in Whitbread were down 2.1% at 4,799.00p per share on Monday morning.
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