Rolls-Royce implements £1bn share buy-back programme

ROLLS-ROYCE has initiated a new £1bn share buy-back programme following the completion of the sale of its energy gas turbine and compressor business to Siemens.

The £785m deal was completed with the German manufacturer earlier this month. The subject of the deal supplies aero-derivative gas turbines, compressor systems and related services to customers in the oil and gas and power generation sectors.  

Rolls-Royce had said from the outset that it intended to implement the buy-back scheme as soon as the deal was completed.

The aim of the buy-back is to reduce the issued share capital of the company, helping enhance returns for shareholders.

The first £250m tranche will be a non-discretionary programme and is irrevocable, when the company is in a prohibited period. The purchases made under the programme will be managed by Jefferies which will make its trading decisions in relation to the company’s securities independently of, and uninfluenced by, Rolls-Royce.

In a statement, Rolls-Royce said any share purchases pursuant to the arrangements would be carried out within certain pre-set parameters and in accordance with listing rules.

The shares being purchased on behalf of the company will either be cancelled or held in treasury.