Share Buybacks: Imperial Brands 

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March 2024

Following the completion of £1Bn share repurchase program in FY23, Imperial Brands announced a new program of £1.1Bn in October 2023 that will last until the end of September 2024. Recall: Imperial Brands distribute surplus capital to shareholders (in the form of dividends and share buybacks) while maintaining its leverage at the lower end of 2.0-2.5x net debt to EBITDA range.

On March 11, 2024, Imperial Brands announced that the first tranche of the current share repurchase program is completed. The second tranche of the program (£550Mn) will commence on March 11, 2024 and last up until October 29, 2024 (longer than initially anticipated).

In the first repurchasing period (from October 6, 2023 to March 8, 2024), Imperial Brands shares have made a round-trip from £16s to £19s and back to £16s – similar to the price action caused by the FY23 share repurchase program (see below for further details).

October 2023

On October 5, Imperial Brands announced a new £1.1Bn share buyback program (~8% of share capital at the time of the announcement). In FY23 (October 2022 – September 2023), Imperial repurchased 52.1Mn shares (~5.5% of share capital, £1.0Bn in total). In the first two month of FY23 (October – November 2022), Imperial shares have ventured a 15% rally – yet, to close the FY23 down by 10%.

Morgan Stanley (Imperial’s broker) started the share repurchases on October 6. Since the initiation of the new program, Imperial’s one-directional, constant bid on its own shares make ~15% of its daily average trading volume and Imperial shares have gained ~15% (net of dividend).

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