Following the completion of its first £30m buy-back program in January 2024, TP ICAP Group plc (LON:TCAP) announces that it will commence a second share buy-back programme, from today, of TP ICAP ordinary shares of 25p each for maximum consideration of £30m.
The plan aims to reduce the company’s capital and/or fulfill the obligations arising from the employee share plans.
TP ICAP generates cash with a prudent capital management framework and the Board believes the second acquisition strikes the right balance between continued and substantial investment in the company’s organic prospects such as Fusion, Liquidnet Credit and Parameta Solutions, alongside debt reduction each time. when interest rates are high.
In line with the company’s clear dividend policy (payout ratio of 50% of adjusted earnings after tax), the Board recommends a final dividend of 10.0 pence per share, an increase of 27%, which would take the total 2023 dividend to 14.8 pennies, up 19%. The final dividend will be paid to eligible shareholders on May 24, 2024, with an ex-dividend date and record date of April 11, 2024 and April 12, 2024, respectively.
In addition to the acquisitions, TP ICAP has freed up £100m in cash before the end of 2023, ahead of schedule. This cash is used to reduce debt and other financing obligations, reducing future net finance costs and increasing investment grade margin.
The Company will initially rely on the safe harbor conditions for transactions set out in Article 3(2) and Article 3(3) of the technical standards. However, if the safe harbor conditions would limit the Company’s ability to purchase the Second Market within the targeted time frame, given, for example, illiquidity of shares, the Company may then decide and announce its intention to trade outside the conditions safe harbor.
The Company has entered into an agreement with Peel Hunt LLP pursuant to which it has issued instructions (which are irrevocable during any closed period) to Peel Hunt to manage the Second Purchase as a “matched” principal. Peel Hunt will carry out the Company’s instructions by acquiring Common Shares for later repurchase by the Company. This agreement is in accordance with Chapter 12 of the FCA Listing Rules and the Company’s general power to buy back Common Shares. Peel Hunt will make its commercial decisions independently and without influence from the Company during any Group closed periods.
Peel Hunt will undertake trading in Common Shares on any available trading venue or on an over-the-counter basis in order to effect the Second Purchase. Disclosure of such transactions will not be made by Peel Hunt as a result of or as part of the Second Market, but Peel Hunt will continue to make any disclosures it is legally required to make.