SHARE BUYBACK PROGRAMME – THIRD TRANCHE
On 25 October 2023, Reckitt Benckiser Group plc (“Reckitt” or the “Company“) announced a £1billion share buyback programme (the “Programme“), the purpose of which is to reduce the share capital of the Company.
On 30 October 2023, the Company announced commencement of the first tranche of this Programme to return up to £250 million of capital to shareholders (the “First Tranche“) which completed on 30 January 2024. On 31 January 2024, Reckitt announced commencement of the second tranche of this Programme as of 1 February 2024 to return up to a further £250 million of capital to shareholders (the “Second Tranche“).
Reckitt today announces its intention to commence a third and final tranche of the Programme (the “Third Tranche“) which will return a further up to £500 million of capital to shareholders. The Third Tranche will commence two days after the completion of the Second Tranche (anticipated to be during April 2024) and the Third Tranche is anticipated to end during July 2024.
Reckitt announces that, in connection with the Third Tranche, it has entered into an agreement with Morgan Stanley & Co. International Plc (“Morgan Stanley“) under which it has issued an instruction to Morgan Stanley to manage the Third Tranche of the Programme. Morgan Stanley will, acting as riskless principal, purchase Ordinary Shares for an aggregate purchase price of no greater than £500 million and will simultaneously sell such Ordinary Shares on to the Company.
Any purchase of Ordinary Shares in relation to this announcement will be carried out on the London Stock Exchange and Multilateral Trading Facilities, as defined by the Directive 2014/65/EU on markets in financial instruments (including the delegated and implementing acts adopted under it) as implemented, retained, amended, extended, re-enacted or otherwise given effect in the United Kingdom from 1 January 2021 and as amended or supplemented in the United Kingdom thereafter, and executed in accordance with the Listing Rules and Reckitt’s general authority to make market purchases of Ordinary Shares. The shares will be purchased in accordance with the price and volume conditions set out in the Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the conditions applicable to buyback programmes and stabilisation measures as implemented, retained, amended, extended, re-enacted or otherwise given effect in the United Kingdom from 1 January 2021 and as amended or supplemented in the United Kingdom thereafter.
Reckitt will issue a further announcement upon the commencement of the Third Tranche and will announce any market repurchase of Ordinary Shares no later than 7.30 a.m. on the business day following the calendar day on which the repurchase occurred. To the extent permitted by law, Ordinary Shares purchased under the Third Tranche of the Programme will be held in treasury. For the avoidance of doubt, no repurchases will be made in respect of the Company’s American Depository Receipts.
The acceleration of our share buyback programme reflects the Board’s confidence in the continued strong free cashflow generation of Reckitt and its framework for enduring value creation, as set out in the strategic update in October last year.
This announcement does not constitute, or form part of, an offer or any solicitation of an offer for securities in any jurisdiction.
CONTACT DETAILS:
Contacts
Richard Joyce +44 (0)7807 418516
Investor Relations
Catheryn O’Rourke +44 (0) 1753 217 800
General Counsel & Company Secretary