Virgin Money UK PLC (LON:VMUK) has today announced a share buyback extension to repurchase up to an additional £50 million in aggregate between its ordinary shares of £0.10 each listed on the London Stock Exchange and CHESS Depositary Interests, each representing one Share, listed on the Australian Securities Exchange. The Extended Buyback is an extension to the Company’s inaugural share buyback programme of up to £75 million in aggregate between its Shares and CDIs previously announced by the Company on 30 June 2022. Subject to trading liquidity, Virgin Money intends to repurchase Shares and CDIs in approximately equal proportions. The Extended Buyback is expected to commence today, 21 November 2022, and in the case of Shares bought back in the UK the end date is 02 May 2023 and in the case of CDIs bought back in Australia, the end date is 02 May 2023 subject to approval by shareholders within the scope of the authority to be sought at the Company’s 2023 Annual General Meeting.
Virgin Money set out its updated capital framework and approach to shareholder distributions at its 2022 Interim Financial Results on 05 May 2022, outlining a 30% full year dividend pay-out, supplemented with buybacks, subject to an ongoing assessment of surplus capital, market conditions and regulatory approval. Following Prudential Regulation Authority approval and with continued robust levels of capital, today’s buyback announcement supplements the 10.0p full year 2022 dividend, in line with our announced framework.
Virgin Money UK has entered into a non-discretionary arrangement with Citigroup Global Markets Limited to purchase Shares as riskless principal and to make trading decisions independently of the Company. Any purchase of Shares pursuant to this engagement will be carried out on the London Stock Exchange or other recognised investment exchanges[1]. The Company has also entered into a discretionary arrangement with Citigroup Global Markets Australia Pty Limited to purchase CDIs on the Australian Securities Exchange on an agency basis during open periods. The purpose of the Extended Buyback is to reduce the Company’s issued share capital by returning surplus capital to shareholders. It is the Company’s present intention that the repurchased Shares and CDIs (including their underlying Shares) will be cancelled.
The Extended Buyback will be effected in accordance with the scope of the authority conferred on the Company at its February 2022 Annual General Meeting, any further authority conferred on the Company at its February 2023 Annual General Meeting, Regulation (EU) No 596/2014 (the Market Abuse Regulation), the Commission Delegated Regulation (EU) 2016/1052 (both form part of Retained EU Law as defined in the European Union (Withdrawal) Act 2018) and Chapter 12 of the Listing Rules. The Extended Buyback is subject to the continuing approval of the Prudential Regulation Authority.
[1] Chi-X Europe or BATS Europe
