Diageo has commenced its share buyback programme to return up to £2.0 billion to shareholders during the financial year ending 30 June 2019.
The drinks company announced the ‘F19 Programme’ on 26 July, when it released its trading update for the 12 month period ending 30 June 2018.
The group confirmed that it has entered into a non-discretionary agreement with Citigroup Global Markets Limited (“Citi”) to execute the first tranche of the F19 Programme to enable the company to buy back shares.
The agreement is expected to end no later than 31 January 2019. The initial tranche will be for a value of up to £1.4 billion with further tranche(s) to be announced during the financial year ending 30 June 2019, the group reported in a statement.
Citi will make its trading decisions in relation to the company's securities independently of, and uninfluenced by, the company.
Any purchase of shares by Diageo contemplated by this announcement will be carried out on the London Stock Exchange or another recognised investment exchange.
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.