Glencore plc has successfully executed a significant transaction involving the purchase of its own ordinary shares. This move comes as part of the company’s ongoing share buyback program, aimed at enhancing shareholder value and optimizing its capital structure.
On August 9, 2023, Glencore plc completed the purchase of a substantial number of its ordinary shares with a nominal value of USD 0.01 each on the London Stock Exchange. The shares were acquired from UBS AG, London Branch, one of the leading investment firms. This strategic transaction was a continuation of the company’s existing buyback program, with the recently acquired shares set to be held in treasury.
The table below provides an overview of the transaction details:
|Date of Purchase||Aggregate Number of Shares Purchased||Lowest Price per Share (GBP)||Highest Price per Share (GBP)||Volume Weighted Average Price per Share (GBP)|
|August 9, 2023||1,930,000||£4.5105||£4.6000||£4.5551|
These share purchases were executed across various trading venues, including the London Stock Exchange, BATS, and Chi-X, reflecting the company’s commitment to transparency and efficient market operations. The aggregate volume weighted average price across these venues stood at £4.5548 for shares purchased on the London Stock Exchange, £4.5556 for shares on both BATS and Chi-X, and no transactions on Aquis.
This recent transaction significantly impacts Glencore plc’s shareholding structure. Following the buyback, the company now holds a total of 1,314,823,041 ordinary shares in treasury. When factoring in the treasury shares, the company has a total of 12,385,176,959 ordinary shares in issue. This number represents the total voting rights attributable to these shares and serves as a key metric for shareholder notifications under the FCA’s Disclosure Guidance and Transparency Rules.
The successful execution of this share buyback aligns with Glencore’s ongoing efforts to optimize its capital allocation and return value to its shareholders. The buyback program, announced on August 8, 2023, is expected to continue until February 2024, marking the second phase of the initiative. The first phase of the program aimed at repurchasing shares in the market was completed earlier, underscoring the company’s commitment to creating sustainable long-term value.
Glencore’s buyback strategy is consistent with its overarching corporate objectives, emphasizing prudent financial management and disciplined allocation of resources. By repurchasing its own shares at opportune price levels, the company aims to bolster investor confidence and deliver enhanced returns over time.
Investors and industry experts are closely watching Glencore’s strategic moves, as the company navigates dynamic market conditions and leverages its position as a global leader in the natural resources sector.