Mitie Suspends Share Buyback to Fund Marlowe Acquisition
Why we think this is neutral
The RNS announcement is about Mitie Group suspending its share buyback programme to fund the acquisition of Marlowe plc. This is a routine corporate action and does not contain any significant positive or negative information about the company's performance or outlook.
Key Points
- Mitie suspending £125m share buyback programme
- Buyback suspension to fund proposed acquisition of Marlowe plc
- Capital deployment policy prioritises M&A, dividends, and employee share schemes
Summary
The facilities management company is suspending its share buyback to finance the acquisition of Marlowe plc.
Mitie Group plc has announced that it is suspending its £125m share buyback programme with immediate effect, following the proposed acquisition of Marlowe plc. The company states that the capital deployment policy prioritises strategic M&A, a progressive dividend policy, and purchasing shares to fulfil employee incentive schemes. Surplus funds will be returned to shareholders via share buybacks once the Marlowe acquisition is completed and leverage is reduced.
GENERAL UPDATE