Compass Group PLC has announced that it has entered into a non-discretionary agreement with BNP Paribas Arbitrage S.N.C. to enable the purchase of up to $250 million worth of the company's ordinary shares between December 4, 2023, and May 8, 2024. This share buyback is part of the company's plan to return surplus capital to shareholders and is the initial stage of a $500 million share buyback program announced with its full-year results on November 20, 2023. The buyback will be conducted within certain pre-set parameters and is subject to M&A activity.
The company's shareholders authorized the purchase of up to 175,720,000 ordinary shares at the 2023 Annual General Meeting, and the company is currently authorized to purchase up to 139,625,908 ordinary shares. The total number of shares acquired through the buyback will not exceed the maximum number authorized by the shareholders.
BNP Paribas Arbitrage S.N.C. will make its trading decisions independently of the company and will conduct the purchases on any appropriate regulated stock market, with the on-sale of the shares to the company taking place on the London Stock Exchange.
The buyback will be conducted in compliance with the terms of the General Authority and the regulations set forth by the Market Abuse Regulation and the UK Listing Rules. BNP Paribas Arbitrage S.N.C. may undertake transactions in the company's shares to manage its risk positions arising from the buyback.
The shares purchased through 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 shares to employees or directors. No purchases will be made in respect of the company's American Depositary Receipts.