Ascential lays out plans to return £850m to shareholders

4th Apr 2024 08:41

(Sharecast News) - Ascential expanded on its plans to return £850m to shareholders on Thursday, involving a tender offer to acquire up to £300m of Ascential shares, a special dividend of at least £450m, and on-market share buyback programmes to acquire £100m of Ascential shares.

The FTSE 250 company said the initiatives were part of its strategy to optimise shareholder returns and enhance shareholder value.

It said resolutions pertaining to the tender offer and share consolidation would be presented to shareholders at a general meeting on 22 April.

The tender offer, set to return up to £300m to shareholders, would allow shareholders to tender their shares at a price between 315p and 331p per share, determined via a 'Dutch auction'.

Ascential said the tender offer, contingent on shareholder approval, was expected to open on 5 April and close on 3 May.

The special dividend meanwhile aimed to return at least £450m to shareholders.

If the tender offer was undersubscribed, the special dividend would be adjusted accordingly to ensure a total return of £750m between the tender offer and the special dividend.

The special dividend was set to be paid on 3 June.

Finally, the share consolidation was proposed to become effective on 20 May, following the tender offer closing date and the expected declaration of the special dividend.

The share consolidation aimed to maintain the comparability of Ascential's share price and per-share metrics before and after the special dividend, reflecting the value returned to shareholders.

Additionally, a share buyback programme not exceeding £100m would be underway following the conclusion of the tender offer and special dividend.

Any shares repurchased would be cancelled, reducing Ascential's share capital.

At 0845 BST, shares in Ascential were up 3.87% at 317p.

Reporting by Josh White for Sharecast.com.