NMC Health PLC (LON:NMC) today announced that it intends to immediately initiate the process to seek shareholder approval for a share buyback programme. The buyback authority will require formal approval by shareholders at a General Meeting.
As the leading shareholders in the Company have indicated that they would not be willing to participate in any buyback at the Company’s present valuation, the Company will be required to also seek shareholder approval to waive the compulsory purchase provisions as stated in Rule 9 of the Takeover Code.
The Company has a number of very attractive investment opportunities for the short and medium term which it remains committed to deliver. Further, the Company also maintains a strong balance sheet to provide suitable optionality of funding and therefore the share buyback programme will, subject to shareholder approval, only be employed opportunistically to take advantage of exceptional price volatility and will be limited to a maximum of US$200m.
Shareholders will be kept informed of the timetable for the proposed shareholder vote and the publication of the accompanying shareholder circular.