TP ICAP Group plc (LON:TCAP) announces that it will commence a share buyback programme, starting today, of TP ICAP’s ordinary shares of 25p each for a maximum consideration of £30 million.

The aim of the program is to reduce the capital of the company and/or meet obligations under employee share schemes. Ordinary Shares purchased under the Buyback that are not cancelled will have their rights to dividend receipt waived by the Company.

The Buyback highlights the Board’s confidence in the future prospects of TP ICAP, reflects its strong financial position and is consistent with its dynamic capital management strategy. It is being funded by a range of initiatives, following the Jersey re-domiciliation in 2021, and cash generation.

TP ICAP is cash generative with a prudent capital management framework and the Board believes the Buyback strikes the appropriate balance between the continued and substantial investment in the Company’s organic prospects such as Fusion, Liquidnet Credit, and Parameta Solutions alongside reducing net debt at a time when interest rates are high, and the Company’s clear dividend policy of a 50% pay-out ratio of adjusted post-tax earnings for the year as whole.

An interim dividend per share of 4.8 pence, up 7%, will be paid on 3 November 2023 to eligible shareholders.

Any share purchases will be made by the Company within certain pre-set parameters and in accordance with the general authority of the Company to repurchase shares granted by shareholders at the Company’s Annual General Meeting held on 17 May 2023, which permits the Company to purchase no more than 78,867,093 ordinary shares (or 10% of the issued share capital).

The Company has entered into an agreement with Peel Hunt LLP under which it has issued irrevocable instructions to Peel Hunt to manage the Buyback as “matched” principal. Peel Hunt will carry out the Company’s instructions through the acquisition of Ordinary Shares for subsequent repurchase by the Company. This arrangement is in accordance with Chapter 12 of the UKLA Listing Rules and the Company’s general authority to repurchase Ordinary Shares. Peel Hunt will make its trading decisions under the Programme independently of, and uninfluenced by, the Company. Purchases may therefore continue during any closed periods of the Group.

Peel Hunt will undertake transactions in Ordinary Shares on any available trading venue or on an over-the-counter basis in order to execute the Buyback. Disclosure of such transactions will not be made by Peel Hunt as a result of or as part of the Buyback, but Peel Hunt will continue to make any disclosures it is otherwise legally required to make.