Diversified Energy Company PLC (LON:DEC) has announced details regarding the parameters of a Share Buyback Programme.
As previously approved at the Annual General Meeting, the Company has the authority to buy back the Company’s ordinary shares of 1p each. Under the Programme, the Company, at its discretion and on occasion, may (subject to applicable law) purchase its Shares in open market transactions depending on market conditions, share price, trading volume, and other factors. The purpose of the Programme is to reduce the issued share capital of the Company. The Board believes that the Programme, if and when implemented, will represent an appropriate use of the Company’s cash resources relative to its net asset value.
The Company intends to conduct the Programme concurrent with the following parameters:
• The maximum number of Shares repurchased shall not exceed 97,410,000 Shares
• The total consideration of Shares repurchased under the Programme shall not exceed an aggregate market value of £97.4 million
• The Programme will expire at the earlier date of the 30 June 2024 or the Company’s 2024 Annual General Meeting of its Shareholders
Diversified will execute the Programme on the London Stock Exchange within the limitations of the shareholder authority granted at the annual general meeting held on 2 May 2023 and within the parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU (in each case, as it forms part of UK law pursuant to the European Union (Withdrawal) Act 2018) and Chapter 12 of the Financial Conduct Authority’s Listing Rules. The Company will hold as treasury shares any Shares repurchased in accordance with the provisions of the Companies Act 2006 and will cancel the Shares thereafter. Diversified will make appropriate disclosures during the buyback period of the number of Shares that the Company has repurchased.
Stifel Nicolaus Europe Limited will purchase Shares under the Programme on behalf of the Company. The Company will provide instructions to buy back Shares as and when its management believes that, at the time of instruction, these repurchases will enhance earnings per Share and would be in the best interests of shareholders generally. From time to time, the Company may also provide one or more time-limited, irrevocable, non-discretionary instructions to Stifel to make trading decisions and repurchase Shares within those instructions independently of the Company. Any purchases of shares made during closed periods pursuant to the Programme shall be made independently of and uninfluenced by the Company.