Assetco shareholders greenlit a buyback programme at a general meeting on Wednesday, which will see up to 10% of the firm’s share capital repurchased.
A maximum of 14,929,297 ordinary shares will be bought, with the company paying no more than 105% of the average middle market closing price of an ordinary share on AIM for the five business days preceding the date of purchase.
They will be acquired via open market transactions and “may be made from time to time depending on market conditions, share price and trading volume”, Assetco said.
The repurchased shares will be held in treasury either for later reissue or cancellation. They hold no voting rights while held in the treasury, and do not pay dividends.
It will see up to £7.5m will be retutrned to shareholders.
When the share repurchase programme was announced on 9 September, the board said it was in response to an “increase in the company’s issued share capital following the issue of shares as consideration for the acquisition of River and Mercantile Group PLC and under various company incentive plans”.
In July, the board confirmed it was scrapping its long-term incentive plan, 10 months after a review was launched by the remuneration committee.
The announcement had little impact on the Assetco shareprice, which was up 0.7% at midday to sit at 68 pence per share.
See also: Assetco aims to get River and Mercantile profitable by early 2023