Compass Group PLC has announced a non-discretionary agreement with J.P. Morgan Securities plc to enable the purchase of up to a market equivalent of $250 million of the Company's ordinary shares between 21 June 2024 and 17 December 2024. This buyback is the second and final stage of the Company's $500 million share buyback announced with its full-year results on 20 November 2023. The purpose of the buyback is to reduce the share capital of the Company by returning surplus capital to shareholders.
The buyback will be conducted within certain pre-set parameters, and the Company is currently authorized to purchase up to a maximum of 171,140,000 Ordinary Shares. J.P. Morgan Securities plc will make its trading decisions independently of the Company and will conduct purchases of Ordinary Shares on any appropriate regulated stock market but will on-sell them to the Company on the London Stock Exchange.
The buyback will also be conducted within the parameters prescribed by the Regulation (EU) No 596/2014 (the Market Abuse Regulation) and in accordance with Chapter 12 of the UK Listing Rules. J.P. Morgan Securities plc may undertake transactions in Ordinary Shares in order to manage its risk positions arising directly or indirectly from the buyback.
All Ordinary Shares purchased pursuant to the buyback will be held in treasury and are expected to be used to meet obligations arising from employee share schemes, or other allocations of Ordinary Shares, to employees or directors. No purchases will be made in respect of the Company's American Depositary Receipts.