Drax begins £50m share buyback programme

Drax Group announced on Friday that it is commencing a £50m share buy-back programme, in a bid to reduce its share capital.

The FTSE 250 company said the shares purchased would be held in treasury, pending cancellation or re-issue.

It said the maximum number of shares that could be repurchased under the programme would be 40,670,254.

“The programme is expected to be completed no later than 21 January 2019,” the board said in its statement.

Drax entered into an agreement with JP Morgan Securities, under which it issued an irrevocable instruction to manage the programme.

“JP Morgan Securities will carry out the programme through the acquisition of ordinary shares in the company within certain predefined parameters for subsequent repurchase by the company,” the Drax board explained.