British American Tobacco (BATS) Announces Share Buyback Program

  • Overview of the buyback program initiated by British American Tobacco p.l.c. (BATS) in March 2024.
  • Details on the number of shares purchased, prices paid, and the impact on the company's shares.
  • Discussion on the significance of share buybacks and their implications for investors and the company's financial strategy.
British American Tobacco

British American Tobacco p.l.c. (BATS) recently made headlines with its announcement regarding a significant transaction in its own shares. This move reflects the company’s strategic approach to capital management and investor relations.

Transaction Details

On 19 March 2024, BATS purchased 300,000 of its ordinary shares of 25 pence each from UBS AG. This transaction was carried out in accordance with the authority granted by shareholders at the Company’s Annual General Meeting on 19 April 2023.

Purpose of Buyback

The shares were acquired as part of BATS’ buyback program, which was announced on 18 March 2024. Buyback programs are common among publicly traded companies and are often used as a means to return capital to shareholders and enhance shareholder value.

Price Dynamics

The purchase prices for the shares varied, with the highest price paid per share being 2,434.50p and the lowest price paid per share being 2,393.50p. The volume-weighted average price paid per share was 2,416.0301p.

Here is a summary table of the purchase prices:

Date of PurchaseNumber of Shares PurchasedHighest Price (pence)Lowest Price (pence)Volume Weighted Average Price (pence)
19 March 2024300,0002,434.50p2,393.50p2,416.0301p

Impact on Share Structure

After the purchase and cancellation of the acquired shares, BATS will have 2,235,842,848 ordinary shares in issue (excluding treasury shares) with voting rights. Additionally, the company will hold 220,523,018 ordinary shares in treasury.

Shareholder Implications

Shareholders can use this information to assess their interest or any changes to their interest in BATS. This is in line with the FCA’s Disclosure Guidance and Transparency Rules, ensuring transparency and accountability in the financial markets.

Investor Relations and Market Perception

Share buyback programs can also influence investor relations and market perception. They demonstrate management’s belief in the company’s intrinsic value and can contribute to a positive market sentiment.

Conclusion

BATS’ recent transaction in its own shares through the buyback program reflects its proactive approach to capital management and shareholder value enhancement. The transparency and compliance with regulations underscore the company’s commitment to good governance practices. As investors continue to monitor market dynamics, such initiatives contribute to shaping perceptions and fostering investor confidence in BATS’ long-term prospects.

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