BlackRock Throgmorton Trust Buys Back Shares, Holds 10.89% in Treasury

BlackRock Throgmorton Trust plc, a UK-based investment trust, has purchased 11,237,496 of its own ordinary shares on the London Stock Exchange, holding them in treasury, which represents 10.89% of its total issued share capital, as part of its proactive approach to capital management. This share buyback reflects the company's flexibility in managing its capital structure and potentially supporting its share price, with implications for the UK smaller and mid-capitalization companies sector." This description focuses on the primary topic of the share buyback, the main entity of BlackRock Throgmorton Trust plc, the context of the London Stock Exchange, and the significant action of holding shares in treasury. It also highlights the implications for the company's capital management and the UK smaller and mid-capitalization companies sector.

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Aqsa Younas Rana
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BlackRock Throgmorton Trust Buys Back Shares, Holds 10.89% in Treasury

BlackRock Throgmorton Trust Buys Back Shares, Holds 10.89% in Treasury

BlackRock Throgmorton Trust plc announced on May 14, 2024, that it has purchased 11,237,496 of its ordinary shares on the London Stock Exchange through Stifel. The shares, each with a nominal value of 5 pence, will be held in treasury by the investment trust company.

Why this matters: This share buyback reflects BlackRock Throgmorton Trust's proactive approach to capital management, which can have a significant impact on the company's financial performance and investor confidence. As a major investment trust, its actions can also influence market trends and sentiment in the UK smaller and mid-capitalization companies sector.

Following the share buyback, BlackRock Throgmorton Trust now holds a total of 11,237,496 ordinary shares in treasury. This represents 10.89% of the Company's total issued share capital of 103,209,864 Ordinary Shares, including treasury shares.

The Company noted that the total number of ordinary shares in issue, excluding treasury shares, now stands at 91,972,368. BlackRock Throgmorton Trust reminded the market that shares held in treasury do not carry any voting rights.

For reporting purposes, the Company stated that the market should exclude shares held in treasury and use the figure of 91,972,368 when determining if they are required to notify their interest in, or a change to their interest in BlackRock Throgmorton Trust, effective May 16, 2024.

The share buyback on May 14 saw BlackRock Throgmorton Trust acquire 44,000 shares at a weighted average price of 605.32p per share. The lowest price paid was 603.30p, while the highest price was 608.00p per share.

As of May 13, 2024, the unaudited net asset values for BlackRock Throgmorton Trust were 668.15p on a capital only basis and 676.54p including current year income. The Company valued investments on a bid price basis, with revenue items included in net asset value and dividends payable deducted on the ex-dividend date.

BlackRock Throgmorton Trust, an investment trust managed by BlackRock Investment Management (UK) Limited, focuses on investing in UK smaller and mid-capitalization companies. By holding a significant portion of shares in treasury, the Company maintains flexibility in managing its capital structure and potentially supporting its share price.

The recent share buyback by BlackRock Throgmorton Trust reflects its active approach to capital management. With 10.89% of its issued share capital now held in treasury, the Company has the option to reissue these shares at a later date or cancel them, depending on market conditions and its strategic objectives.

Key Takeaways

  • BlackRock Throgmorton Trust buys back 11,237,496 shares at 605.32p average price.
  • Shares held in treasury now total 10.89% of issued share capital.
  • Total shares in issue, excluding treasury, stand at 91,972,368.
  • Shares in treasury do not carry voting rights.
  • Buyback reflects proactive capital management, potentially supporting share price.