Man Group to start share buyback programme of up to US$100mln

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Man Group PLC (LON:EMG) has announced it is to commence a new share buyback programme of up to US$100mln.

The hedge fund manager said the move is in line with its policy to distribute capital to shareholders while maintaining a “prudent” balance sheet.

READ: Man Group ups dividend as funds under management shrink

The programme will run from September 18, 2020, to September 17, 2021, and will cover 66mln shares.

The company said it is looking to reduce its share capital and meets its obligations regarding employee share option programmes.

“The share price appears to have been given little credit for such a policy, despite the vast majority of these purchases being made at levels we consider to be well below Man’s intrinsic value (and therefore value creative), a different approach might be taken on the distribution policy,” analysts at Shore Capital commented in a note to clients.

“Perhaps using an element of performance fees to provide an underpin to the ordinary dividend such that the policy can be progressive, thereby giving investors, particularly those with an income mandate, greater predictability/ visibility over the dividend, could provide helpful support to the depressed valuation.”

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