REG - Prudential PLC - Start of 1st tranche of share repurchase programme

PrudentialAnnouncement

24/06/2024 07:00

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RNS Number : 4862T  Prudential PLC  24 June 2024

 
 

 

 

Prudential plc

 

Commencement of First Tranche of share buyback programme

 

Prudential plc (the "Company") announces that it will commence the first US$
700 million tranche ("First Tranche") of the US$ 2 billion share buyback
programme ("Programme") separately announced today.

 

The purpose of the Programme is to reduce the issued share capital of the
company in order to return capital to shareholders. The Directors consider the
First Tranche and the Programme to be in the best interests of the Company and
of its shareholders generally.

 

The Company intends to repurchase additional Ordinary Shares in the future
pursuant to subsequent tranches of the Programme. This is in addition to other
share buybacks that may be made in the future in order to offset the expected
dilution from the vesting of awards under employee and agent share schemes or
the take-up of any scrip dividend option if a scrip dividend alternative were
to be offered. The Company will make further announcements in respect of any
such buybacks in due course.

 

The Company continues to explore means of further focussing issuances of
employee and agent share schemes and enhancing liquidity of the Ordinary
Shares held on the Hong Kong line.

 

Detailed terms of the First Tranche

 

The Company has entered into an arrangement with Goldman Sachs International
("Goldman Sachs") (acting as riskless principal) to conduct the buyback in
respect of the First Tranche on its behalf and to make trading decisions in
respect of the First Tranche independently of the Company.

 

The arrangement with Goldman Sachs enables the purchase of ordinary shares in
the issued share capital of the Company ("Ordinary Shares") for a period from
24 June 2024, and will complete no later than 27 December 2024. The aggregate
maximum pecuniary amount allocated to the First Tranche is US$ 700 million
(exclusive of associated fees, expenses and stamp duty) (equivalent to GBP 554
million  and HKD 5,464 million, in each case based on the closing exchange
rate between US$ and GBP and US$ and HKD as of 21 June 2024 GMT) representing
an amount equal to the aggregate value of approximately 2.9% of the Company's
issued share capital at the closing share price on 21 June 2024.

 

Goldman Sachs may effect purchases of Ordinary Shares under the First Tranche
on the London Stock Exchange and/or other trading venues 1  (#_ftn1) for
subsequent purchase by the Company. Purchases by the Company will be treated
as being made on the London Stock Exchange. The Company intends that any
Ordinary Shares purchased will be cancelled.

 

The First Tranche will be conducted in accordance with the authority granted
by shareholders at the Company's 2024 Annual General Meeting. The maximum
number of Ordinary Shares which may be purchased by the Company under the
First Tranche is 200,000,000. The First Tranche will be conducted within the
parameters prescribed by the Market Abuse Regulation 596/2014/EU (as in force
in the UK and as amended by the Market Abuse (Amendment) (EU Exit) Regulations
2019), the Commission Delegated Regulation 2016/1052/EU (as in force in the UK
and as amended by the FCA's Technical Standards (Market Abuse Regulation) (EU
Exit) Instrument 2019) and in accordance with Chapter 12 of the UK Listing
Rules, the Hong Kong Listing Rules and the Hong Kong Code on Share Buy-backs.
No purchase of Ordinary Shares will be conducted on the Hong Kong Stock
Exchange. No repurchases will be made in respect of the Company's American
Depositary Receipts.

 

The Company will make further announcements in due course following any
repurchase of shares. There is no guarantee that the First Tranche will be
implemented in full or that any shares will be repurchased by the Company.

 

Additional information

About Prudential plc

Prudential plc provides life and health insurance and asset management in 24
markets across Asia and Africa. Prudential's mission is to be the most trusted
partner and protector for this generation and generations to come, by
providing simple and accessible financial and health solutions. The business
has dual primary listings on the Stock Exchange of Hong Kong (2378) and the
London Stock Exchange (PRU). It also has a secondary listing on the Singapore
Stock Exchange (K6S) and a listing on the New York Stock Exchange (PUK) in the
form of American Depositary Receipts. It is a constituent of the Hang Seng
Composite Index and is also included for trading in the Shenzhen-Hong Kong
Stock Connect programme and the Shanghai-Hong Kong Stock Connect programme.

 

Prudential is not affiliated in any manner with Prudential Financial, Inc. a
company whose principal place of business is in the United States of America,
nor with The Prudential Assurance Company Limited, a subsidiary of M&G
plc, a company incorporated in the United Kingdom.

 

https://www.prudentialplc.com/ (https://www.prudentialplc.com/)

 

 

Contact

 

 Media                             Investors/Analysts
 Simon Kutner  +44 (0)7581 023260  Patrick Bowes       +852 2918 5468
 Hui-Yi Kho    +852 6298 9676      William Elderkin    +44 (0)20 3977 9215
 Janice Wong   +852 6188 6381      Darwin Lam          +852 2918 6348

 

 

 

 

 

 

 

 

 

 1  (#_ftnref1) Specifically Aquis Exchange Europe, Cboe Europe Limited
through the BXE and CXE order books and any multilateral trading facility
operated by Turquoise Global Holdings Limited, each being a trading venue (as
defined in the Market Abuse Regulation) in the United Kingdom where the
Ordinary Shares are admitted to trading or traded.

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