Flooring manufacturer James Halstead plans to buy back 2.5% of its shares in order to return £11m to its investors.
The share buy-back will be performed by means of a tender offer, at a price not lower than 420p.
The actual offer price will be at a 5% premium to the average closing middle market price per Halstead share on the five trading days immediately preceding the date on which the shares are purchased.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
It is proposed that the actual tender offer price will be calculated on 29 November 2011.
James Halstead does not want to pay more than £11m to buy back the shares, so there is a possibility that the whole deal could be called off if the shares rise sharply before the tender offer takes place.
The company has returned significant cash to its shareholders in previous years, and it continues to trade robustly and generate cash in excess of that which is required for the company's operations, the company said in a statement.
Halstead is currently trading in line with the board's expectations, the firm said.
Having risen sharply in early trading, the share price fell 2.33% to 445p by 15:02.
Pension withdrawals on the rise, HMRC data reveals
Pension withdrawal data has led to some raising concerns over savers ‘raiding’ their pensions unsustainably.
By John Fitzsimons Published
ONS: UK economy recovered from pandemic faster than previously thought
Revisions from the ONS showed the UK economy has grown since the pandemic, while the latest data showed GDP grew in the second quarter of 2023.
By Nicole García Mérida Published
Record results for Halstead
Features Industrial flooring group James Halstead has announced yet another record profit.
By Alex Williams Published