Smiths takes £740m buyback up a notch just days after ‘largest portfolio move in over a decade’
Engineering group Smiths has taken its £742m share buyback up a notch in snapping up £75m worth of ordinary shares.
It forms part of the second tranche of the programme, which Smiths announced in mid-November, that aims to return a wad of cash to shareholders
The second phase of the buyback will begin Monday and end no later than mid-April, the group said in a regulatory filing this morning.
London-headquartered Smiths has hauled in JP Morgan Securities to oversee the buyback’s second phase, as it seeks to trim down its share capital.
It comes as the company pockets around $2.7bn (£1.9bn) from the sale of its medical division earlier this week.
Disposing of Smiths Medical will see Smiths gains $1.85bn (£1.36bn) in immediate cash proceeds as well as $0.5bn (£0.37bn) in ICU shares.
“At our capital markets event in November, we emphasised the exciting and tangible opportunity we have to deliver on our significant potential,” CEO Paul Keel said.
“I am pleased to announce that we have completed the sale of Smiths Medical ahead of schedule, another example of the accelerated pace at which we are now moving.
“This is our largest portfolio move in over a decade and positions us even more strongly to access the growth available in our industrial technology core.”