Abrdn shares up 8% amid £300m buyback plan

Abrdn CEO Stephen Bird

Shares of Edinburgh-based investment giant Abrdn rose as much as 8% on Wednesday after it announced it will commence a return of £300 million to shareholders via the repurchase of ordinary shares.

Abrdn shares are down about 36% in 2022 amid the stock market rout.

“The company today announces that it will commence a return of £300m through the repurchase of the company’s ordinary shares, with a first phase of up to £150m being undertaken by Goldman Sachs International …” said Abrdn.

On 6 July 2022, the company entered into an irrevocable agreement with Goldman Sachs International in relation to the purchase by Goldman Sachs, for the company, of ordinary shares in the company’s share capital for an aggregate consideration of no greater than £150m.

“Goldman Sachs will make trading decisions in relation to the buyback pursuant to the programme independently of, and uninfluenced by, the company with regard to the timing of the purchases. 

“The purchase of shares will take place during the period commencing on 6 July 2022 and ending no later than 30 December 2022 …

“The purpose of the programme is to return excess capital to shareholders. All shares purchased will be cancelled.”