World: Diageo launches share buyback programme with £1.25 bln first phase

Diageo has entered into a non-discretionary agreement with UBS to execute the first phase of its return of capital programme to enable it to buy back shares, it announced on August 1.

The FTSE 100 brewing and distilling giant said the agreement was starting on August 1, and was expected to end no later than 31 January, for a value of up to £1.25 bln.

It comes after Diageo’s board approved a return of capital programme to return up to £4.5 bln to shareholders over the next three years on 25 July.

“The purpose of the buybacks is to reduce the share capital of Diageo,” the board said in its statement.

“All shares repurchased will be cancelled.”

It said the £1.25 bln share buyback programme would fall within the maximum number of shares that could be repurchased under its existing general authority from shareholders to repurchase 246,118,306 shares, granted at the 2018 annual general meeting.

A renewed general authority to repurchase shares up to a maximum of 237,177,623 shares was being sought at Diageo's upcoming 2019 annual general meeting.

“Further execution phases of the return of capital programme will be announced in due course,” the Diageo board added.

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