British American Tobacco Completes $239MShare Buyback, Reducing Shares by 1.4%

British American Tobacco completed a $239 million share buyback, purchasing 656,668 shares at prices ranging from 2399.00p to 2423.00p per share. The company plans to cancel these shares, reducing its total share count by 1.4%.

author-image
Nitish Verma
New Update
British American Tobacco Completes $239MShare Buyback, Reducing Shares by 1.4%

British American Tobacco Completes $239MShare Buyback, Reducing Shares by 1.4%

British American Tobacco p.l.c. (BTI) has announced the completion of a significant share buyback programme, purchasing 656,668 of its own shares on 9th May 2024. The shares were bought at prices ranging from 2399.00p to 2423.00p per share, totaling approximately $239 million.

Why this matters: This move demonstrates the company's commitment to enhancing shareholder value and optimizing its capital structure, which can have a ripple effect on the entire industry. As a leading consumer goods company, British American Tobacco's capital allocation strategy can influence investor confidence and market trends.

As a result of this transaction, the company plans to cancel these shares, which will lead to a reduction in the total number of ordinary shares with voting rights to 2,226,443,712, excluding treasury shares. This move is part of a larger share buyback programme announced earlier on 18th March 2024, which aims to reduce thecompany'sshare count by 1.4%.

This development is a significant update for investors and stakeholders, providing insight into the company's capital allocation strategy and its impact on the company's share structure. Share buybacks are a common method used by companies to return excess cash to shareholders and can also help boost earnings per share by reducing the total number of outstanding shares.

British American Tobacco is one of the world's leading consumer goods companies, with a portfolio of iconic brands such as Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans. The company has a strong presence in over 180 markets and employs more than 52,000 people worldwide.

The completion of this $239 million share buyback marks a significant milestone in British American Tobacco's $800 million buyback program. With a 1.4% reduction in its total share count, the company demonstrates its commitment to enhancing shareholder value and optimizing its capital structure.