LONDON (Alliance News) - Vodafone Group PLC on Monday said it intends to begin a new GBP1.44 billion share buyback programme at the end of February to reduce its share capital.
The telecommunications company said the number of shares to be purchased under the buyback programme will not exceed 799.1 million. The shares will be bought at a price of 180.21 pence each and will be held as treasury shares.
Vodafone shares were trading 0.5% higher early on Monday at 137.74p each, giving it a market capitalisation of approximately GBP36.8 billion.
The repurchase will be financed out of the proceeds from Vodafone's Verizon loan notes, it said, which the company received in two tranches as partial consideration for the sale of its 45% stake in Verizon Wireless in 2014.
Vodafone has received USD2.5 billion in cash in May 2018 following the redemption of the second tranche of these loan notes.
The blue-chip company said the purpose of this share repurchase programme is to avoid an increase in the issued share capital as a result of the maturing of the second tranche of a mandatory convertible bond.
In February 2016, Vodafone issued a two-tranche mandatory convertible bond, the first tranche of which matured in August 2017 and the second tranche of which is due to mature in February.
Vodafone (VOD)