2015/16 Share Buyback
Share Buy Back 2015
On 18 May 2015 we announced our intention to engage in an ongoing and sustainable programme of returns of capital to shareholders. The buy back programme was financed using the surplus cash generated by the business in prior years.
For more information regarding the 2015 share buy back programme please refer to our FAQ.
For a summary of transactions (shares bought back) to date, please click here.
What is a Share Buy Back?
In its simplest terms, a buy-back is a company buying back its own shares. It can do this in one of two ways. The first, and by far the most common, is when a company instructs its broker to buy its shares on the open market, just as a private investor does when they buy shares through a broker. A company has to get authority from its shareholders in order to buy back its shares. This is usually done at its Annual General Meeting. Marks & Spencer obtains this authority at the AGM each year.
Secondly, and far less common, a company can announce a tender offer. This involves all shareholders submitting a price they would be prepared to accept for their shares. In both instances once the company buys back the shares it will normally cancel them.
In 2007/08 Marks & Spencer ran a programme to repurchase up to 10% of its issued share capital, representing around £1bn at the time. As in 2007/08, in 2015 we will again be instructing our brokers to buy shares in the open market. It is our current intention to cancel any shares repurchased in this way.