Man Group announces new $100m share buyback
Man Group has announced plans to buy back up to $100m of shares.
Financial Services
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17:14 18/04/24
FTSE 250
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17:14 18/04/24
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Man Group
268.60p
16:50 18/04/24
This follows on from the $100m buyback announced back in April, which was completed earlier this week and news that the company has agreed to sell its 18.5% management fee interest in Nephila Holdings to Markel Corporation for $130m.
"The acquisition, which remains subject to regulatory approvals, is currently expected to complete in the fourth quarter of 2018 and would generate net proceeds of around $130m and would add an equivalent amount to the group's regulatory capital surplus," Man said.
"The company's policy is to distribute available capital surpluses to shareholders over time, by way of higher dividend payments and/or share repurchases, while maintaining a prudent balance sheet, after taking into account required capital (including liabilities for future earn-out payments) and potential strategic opportunities."
Shore Capital said that at the current share price, buybacks are "hugely value creative".
"Our fair value is 300p for what we think is a completely misunderstood and mis-valued active asset manager," it said, adding that management has selected the correct mechanism for distributing this surplus. "$100m would represent circa 3.5% of the issued share capital at the current share price."
At 0805 BST, the shares were down 0.7% to 141.10p.