ContourGlobal PLC Extension of Share Buyback Programme (5402R)
June 30 2020 - 5:14AM
UK Regulatory
TIDMGLO
RNS Number : 5402R
ContourGlobal PLC
30 June 2020
For immediate release
30 June 2020
ContourGlobal plc ("ContourGlobal" or the "Company")
ContourGlobal announces extension of Share buyback programme
On 1 April 2020 ContourGlobal announced a buyback programme of
up to GBP30 million of ContourGlobal plc ordinary shares of GBP0.01
each ("Shares"), to initially run from 1 April 2020 to 30 June 2020
(the "Initial Buyback Period"). During the Initial Buyback Period,
3,508,239 million Shares were repurchased at an average price of
155.9 pence per Share and total cost of GBP5.5 million, with
667,204,681 Shares remaining in issue.
Today the Company announces that it has entered into an
extension agreement with Investec Bank plc ("Investec") to continue
the buyback programme from 30 June 2020 to 30 September 2020 (the
"Extended Buyback Programme"). Under the terms of the Extended
Buyback Programme, the maximum number of Shares that may be
repurchased by the Company is 12,900,000(1) and, absent a change in
the Company's free float, the current maximum number of shares
which can be bought back is 5,300,000 [1] . Investec will act as
principal in relation to the purchase of the Shares and subsequent
on sale of such Shares to the Company. Under the terms of the
agreement, Investec w ill make purchases of the Shares under the
Extended Buyback Programme independently of, and uninfluenced by,
ContourGlobal. Any Shares repurchased will be held in treasury
pending cancellation or re-issue.
The Company also announces that the number of Shares which are
deemed by the Listing Rules to be held as shares in public hands
(the "Company Free Float") is currently below the minimum 25%
threshold, largely as a consequence of recent shareholder
purchases. [2] The Financial Conduct Authority ("FCA") has granted
the Company a temporary dispensation under the relevant Listing
Rules and has permitted a minimum shares in public hands of 20% of
the Company's issued ordinary share capital, equivalent to
approximately 133.4 million Shares as at the date of this
announcement, effective for a 12-month period until and including
25 June 2021.
Any purchases of Shares contemplated by this announcement will
be effected within certain pre-set parameters agreed between
ContourGlobal and Investec. These arrangements will be in
accordance with the Company's general authority to repurchase
shares granted by ContourGlobal's shareholders at the 2020 annual
general meeting under Resolution 18 of that meeting, Chapter 12 of
the UK Listing Authority's Listing Rules and the relevant
provisions of Market Abuse Regulation (EU) 596/2014 and the
Commission Delegated Regulation (EU) 2016/1052. The purpose of the
programme is to reduce the Company's issued share capital.
Joseph Brandt, Chief Executive said "Our diversified business
model, strong balance sheet and underlying cash flows continue to
enable ContourGlobal to perform well during unprecedented times.
The share price does not reflect the value and resilience of the
underlying business and we think it is in the interests of all
shareholders to continue our share buyback programme."
About ContourGlobal
ContourGlobal is listed on the premium segment of the London
Stock Exchange (TKR: GLO). ContourGlobal is an international owner
and operator of contracted wholesale power generation businesses
with approximately 4,844 MW in operation in 18 countries.
ContourGlobal operates a portfolio of 107 thermal and renewable
power plants across Europe, Latin America, and Africa utilizing a
wide range of technologies.
ENQUIRIES
Investor Relations - ContourGlobal
John Smelt
Tel: +44 (0) 203 626 9047
Mob: +44 (0) 7500 129 218
john.smelt@contourglobal.com
Media - Brunswick
Charles Pretzlik/Simon Maine
Tel: +44 (0) 207 404 5959
Contourglobal@brunswickgroup.com
ENDS
[1] Based on closing share price of 190 pence on 29 June 2020
and an initial programme of GBP30 million
[2] The Listing Rules provide that shares are not considered to
be held in public hands if, among other things, they are held by
persons who have an interest in 5% or more of a listed company's
share capital. An independent institutional shareholder acquired
additional shares which caused their interest to exceed the 5%
threshold and thereby, pursuant to the Listing Rules, caused their
entire position to be excluded from the Company's free float. As a
result, for the purposes of the Listing Rules, the Shares in public
hands currently stands at 20.8% or approximately 138.8 million
Shares as at the date of this announcement.
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END
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