REG - Diageo PLC - Next tranche of Diageo’s capital return programme

DiageoAnnouncement

26/11/2021 07:00

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RNS Number : 6631T  Diageo PLC  26 November 2021

 

Diageo announces the next tranche of its return of capital programme

 

Diageo plc (Diageo) today announces that it is commencing the next tranche of
its previously announced return of capital (ROC) programme of up to £4.5
billion to shareholders by 30 June 2024.

 

Under the first phase of the ROC programme, which was completed on 31 January
2020, Diageo repurchased shares to a value of £1.25 billion. Diageo initiated
the second phase of its ROC programme of up to £1.0 billion on 12 May 2021,
to be completed by the end of fiscal 22. Under the first tranche of the second
phase, which was completed on 12 November 2021, Diageo repurchased shares to a
value of £0.45 billion.

 

Diageo is announcing today that it has entered into a non-discretionary
agreement with Goldman Sachs International (GSI) to enable the company to buy
back shares with a value of up to £0.55 billion. This agreement will
commence on 26 November 2021 and will end no later than 4 March 2022. The
purpose of the repurchases is to reduce the share capital of Diageo and all
shares repurchased under this agreement will be cancelled.

 

Further execution phases of the ROC programme, utilising the most appropriate
mechanic of either share buybacks or special dividends depending on market
conditions, will be announced in due course.

 

Further details of the return of capital programme

GSI will make its trading decisions in relation to Diageo's securities
independently of and uninfluenced by Diageo. Any repurchase of shares by
Diageo contemplated by this announcement will be carried out on the London
Stock Exchange and/or other recognised investment exchange(s).

 

The share buybacks will be effected within certain pre-set parameters and in
accordance with Diageo's general authority to repurchase shares and will be
conducted within the parameters prescribed by the Market Abuse Regulation
596/2014, the Commission Delegated Regulation (EU) 2016/1052 (both as
incorporated into UK domestic law by the European Union (Withdrawal) Act 2018)
and, in the case of Diageo, Chapter 12 of the Listing Rules.

 

This share buyback tranche of up to £0.55 billion will take place within the
limitations of Diageo's existing general authority to repurchase up to
233,611,282 shares granted at its 2021 annual general meeting. After taking
account of the number of shares bought back under the first tranche of the
second phase of the ROC programme, the maximum number of shares that can be
bought back under this authority under the second tranche of the second phase
of the ROC programme is 231,359,356.

 

For further information please contact:

Investor relations:

Durga Doraisamy
 
+44 (0) 7902 126 906

Lucinda
Baker
+44 (0) 7974 375 550

Belinda
Brown
+44 (0) 7590 810 246

                                                                                             investor.relations@diageo.com

Media relations:

Jessica
Rouleau
+44 (0) 7925 642 561

 
 
  press@diageo.com

 

About Diageo

Diageo is a global leader in beverage alcohol with an outstanding collection
of brands including Johnnie Walker, Crown Royal, J&B, Buchanan's and
Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan,
Baileys, Don Julio, Tanqueray and Guinness.

Diageo is a global company, and our products are sold in more than 180
countries around the world. The company is listed on both the London Stock
Exchange (DGE) and the New York Stock Exchange (DEO). For more information
about Diageo, our people, our brands, and performance, visit us at
www.diageo.com. Visit Diageo's global responsible drinking resource,
www.DRINKiQ.com for information, initiatives, and ways to share best practice.

Celebrating life, every day, everywhere.

 

Diageo plc LEI: 213800ZVIELEA55JMJ32

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