Alpha Group Doubles Share Buyback With Fresh £20M Program

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) today announced it has allocated £20 million from its cash reserves to launch a new share buyback program, which will be held in its treasury.

This decision follows the completion of a previous £20 million buyback program on June 27, 2024. Alpha Group said the board reviewed its cash position and given the current cash balances and expected cash generation, agreed to implement another buyback.

The UK-listed broker released a statement that it has entered into non-discretionary instructions with Liberum Capital Limited to conduct the transaction. The maximum price per ordinary share is set to 105% of the average trailing 5-day mid-market closing price, which is in line with the authority granted at the company’s annual general meeting.

The buyback program takes effect from today and will remain active until the date of the company’s next AGM, unless the maximum aggregate consideration of £20 million is reached before then.

Earlier in May, Alpha confirmed its upgrade to the premium list of the London Stock Exchange’s main market. The firm, which initially listed on the LSE’s Alternative Investment Market (AIM) in 2017, transitioned its ordinary shares to be traded on the main market and be admitted to the LSE’s premium listing segment.

The AIM is known for its more flexible criteria for entrepreneurial companies regarding aspects such as minimum free float.

This move aligns with the company’s previously stated plans and involves cancelling its AIM listing, coinciding with its admission to the main market. The shift to the premium market segment, which imposes more stringent revenue requirements, is said to enable Alpha Group to expand its operations and qualify for inclusion in the FTSE index.

During the year, the company launched a new Fund Finance division and opened new Corporate FXRM offices in Madrid and Munich.

Alpha Group also finalized its acquisition of Financial Transaction Services, operating as Cobase. The acquisition, initially announced in September, involves Alpha purchasing an 85% stake in Cobase for €9.4 million in cash, a transaction that was subject to approval by De Nederlandsche Bank, the central bank of the Netherlands.

The deal also includes provisions for Alpha to acquire the remaining 15% stake through a performance-based earn-out scheduled between 2025 and 2028.

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