Redrow PLC Resolutions to Purchase Own Shares & Rule 9 Waiver (6788R)
September 25 2017 - 3:19AM
UK Regulatory
TIDMRDW
RNS Number : 6788R
Redrow PLC
25 September 2017
25 September 2017
Redrow plc
Proposed Resolution to Purchase Own Shares and Rule 9 Waiver
In accordance with Listing Rule 12.4.4, Redrow plc (the
"Company") announces that the Board has decided to propose a
resolution seeking general authorisation to make market purchases
of up to 36,979,993 ordinary shares of the Company (representing 10
per cent. of the Company's issued share capital) subject to the
requirements of the Listing Rules of the UK Listing Authority (the
"Buy Back Resolution") at the Company's forthcoming annual general
meeting (the "2017 AGM").
The Board considers that it is appropriate for the Company to be
in a position to buy back shares in the coming year if it would be
in the best economic interests of the Company to do so.
Accordingly, the Directors intend to propose the Buy Back
Resolution at the 2017 AGM. It is the Directors' current intention
to request authorisation annually going forward.
Since the Concert Party (as defined in the Company's Notice of
the 2017 AGM, published today) has an interest in approximately
32.70 per cent. of the Company's issued share capital, any purchase
of ordinary shares of the Company pursuant to the authority granted
by the Buy Back Resolution would result in an obligation for the
Concert Party to make a general offer in accordance with Rule 9 of
the City Code on Takeovers and Mergers (the "Code"). Therefore, the
Board has also decided to ask independent shareholders to approve
at the 2017 AGM a waiver by the Panel on Takeovers and Mergers (the
"Waiver") of any such obligation following any increase in the
shareholding of the Concert Party up to a maximum of approximately
36.34 per cent. of the Company's share capital as a result of any
exercise of the authority granted under the Buy Back Resolution
(the "Waiver Resolution").
Passing the Waiver Resolution will give the Company the
flexibility to buy back its shares without triggering an obligation
for the Concert Party to make a mandatory offer for the Company.
Although the Board has no current intention to repurchase shares,
it believes that giving the Company authority to do so is in the
best interests of the Company and its shareholders as a whole and
the independent Directors (being the Directors other than Steve
Morgan) consider that the Waiver is a prudent measure to facilitate
this.
The Directors would exercise the authority granted under the Buy
Back Resolution only if they felt it would be in the best economic
interests of the Company to do so. Other investment opportunities,
appropriate gearing levels and the overall financial position of
the Company will be taken into account before deciding upon the
course of action. The Company's current intention is to cancel any
repurchased shares but retains the flexibility to hold any
repurchased shares as treasury shares if it considers this to be in
the best interests of the Company.
Full details of the Buy Back Resolution and the Waiver
Resolution will be set out in the Company's Notice of the 2017 AGM,
which will be sent to shareholders and made available on the
Company's website (www.redrowplc.co.uk) today.
Graham Cope
Company Secretary
01244 520044
This information is provided by RNS
The company news service from the London Stock Exchange
END
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