# Virgin Money begins £50m share buyback

- Link: https://www.directorstalkinterviews.com/virgin-money-begins-50m-share-buyback/4121124550
- Published: 2023-08-02T07:17:01+01:00
- Author: Anthony Fox

**Virgin Money UK PLC** (**LON:VMUK**) has today announced a share buyback to repurchase
up to £50 million in aggregate between its ordinary shares of £0.10 each listed 
on the London Stock Exchange and CHESS Depositary Interests (**“CDIs”**), each representing
one Share, listed on the Australian Securities Exchange. Subject to trading liquidity
and any arrangements put in place to manage compliance with legal requirements, 
Virgin Money intends to repurchase Shares and CDIs in approximately equal proportions.
The Buyback is expected to commence today, 2 August 2023, and will end no later 
than 22 November 2023.

Virgin Money first set out its updated capital framework and approach to shareholder
distributions at its 2022 Interim Financial Results on 5 May 2022, outlining a 30%
full year dividend pay-out, supplemented with buybacks, subject to an ongoing assessment
of surplus capital, market conditions and regulatory approval. The Company recently
announced that it anticipated resuming its buyback programme during FY23, given 
the successful completion of the 2022 Annual Cyclical Scenario stress test. Following
Prudential Regulation Authority approval and with continued robust levels of capital,
today’s buyback announcement supplements the 3.3p interim 2023 dividend announced
alongside the 2023 Interim Financial Results on 4 May 2023, in line with our announced
framework.

The Company has entered into a non-discretionary arrangement with Citigroup Global
Markets Limited to purchase Shares as riskless principal and to make trading decisions
independently of the Company. Any purchase of Shares pursuant to this engagement
will be carried out on the London Stock Exchange or other recognised investment 
exchanges^([1]). The Company has also entered into a discretionary arrangement with
Citigroup Global Markets Australia Pty Limited (together with Citigroup Global Markets
Limited) to purchase CDIs on the Australian Securities Exchange on an agency basis
during open periods.  The purpose of the Buyback is to reduce the Company’s issued
share capital by returning surplus capital to shareholders. It is the Company’s 
present intention that the repurchased Shares and CDIs (including their underlying
Shares) will be cancelled.

The Buyback will be effected in accordance with the scope of the authority to repurchase
shares conferred on the Company at its February 2023 Annual General Meeting, Regulation(
EU) No 596/2014 (the Market Abuse Regulation), the Commission Delegated Regulation(
EU) 2016/1052 (both form part of Retained EU Law as defined in the European Union(
Withdrawal) Act 2018) and Chapter 12 of the Listing Rules. The Buyback is subject
to the continuing approval of the PRA.

^(1]) Chi-X Europe or BATS Europe

Share on: