Hikma engages shareholders over buyback waiver

24th Oct 2024 08:52

(Sharecast News) - Hikma Pharmaceuticals updated the market over the significant opposition to a resolution at its annual general meeting on Thursday.

The FTSE 100 company said the resolution, known as the rule 9 waiver or buyback waiver, faced over 20% opposition from shareholders during the meeting on 25 April.

It said the waiver sought approval from independent shareholders to exempt the Darhold Concert Party - Hikma's largest shareholder - from the obligation to make a general offer for the company if their stake rose to 30% or more due to the company repurchasing its own shares.

Resolution 20, which granted Hikma the authority to buy back shares, was passed with 99.32% approval.

However, the rule 9 waiver, tied to the potential share buyback programme, saw more resistance.

Hikma's board reiterated that the flexibility to conduct share buybacks was key to returning value to shareholders and promoting the company's long-term success.

It said that without the rule 9 waiver, it would be unable to execute any buyback programme.

Since the AGM, Hikma said it had engaged with shareholders and proxy advisers to address concerns and explain the rationale behind the waiver.

The company said it would provide more details on that engagement in its 2024 annual report.

At 0832 BST, shares in Hikma Pharmaceuticals were down 0.07% at 1,971.67p.

Reporting by Josh White for Sharecast.com.