In accordance with authority granted by shareholders at the company’s 2018 Annual General Meeting1, Royal Dutch Shell plc (the ‘company’) has announced its intention to immediately commence a share buyback program.
Chief Executive Officer Ben van Beurden remarked that they are taking another important step towards the delivery of their world-class investment case, with the launch of a $25 billion share buyback program. He said, “Our financial framework remains unchanged. Our free cash flow outlook and the progress we have made to strengthen our balance sheet give us the confidence to start our share buyback program. Our intention remains to buy back at least $25 billion of our shares over the period 2018-2020, subject to further progress with debt reduction and fuel price conditions.”
Under the buyback program, the maximum number of ordinary shares which may be purchased by the company is 834 million. This is the maximum pursuant to the authority granted by shareholders at the company's 2018 Annual General Meeting1.
The company in the first tranche of this buyback program (the ‘initial program’), has entered into an irrevocable, non-discretionary arrangement with a broker to enable the purchase of A ordinary shares and/or B ordinary shares up to and including October 25, 2018. Under the initial program, the aggregate maximum consideration for the purchase of A ordinary shares and B ordinary shares is $2 billion. The shares bought back will be whichever of the A ordinary shares and/or B ordinary shares is economically the least expensive on a given trading day.
To reduce the issued share capital of the company to offset the number of shares issued under the Scrip Dividend Program is the purpose of the initial program and to significantly reduce the equity issued in connection with the company’s combination with BG Group. Entire shares repurchased as part of the initial program will be terminated. PWKD01082018
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