Greencoat UK Wind has announced plans to increase its annual dividend target by 14% to 10 pence per share. In addition, the company intends to launch a buyback program of up to £100 million ($121.1 million).
The U.K. wind farm investment company believes that its current share price does not accurately reflect the operational strength of the company. Therefore, the board has made the decision to increase shareholder returns.
This strategic move is supported by the company’s strong balance sheet and cash flow generation. The FTSE 250-listed company has recognized the opportunity to enhance value for shareholders.
The buyback program will commence shortly and is set to conclude on October 25th of next year. Greencoat plans to repurchase up to 347.5 million shares, equivalent to 14.99% of the share capital issued.
As a result of this announcement, the company’s shares have experienced a positive response in the market. As of 0826 GMT, the shares are up 1.5%, or 1.90 pence, at 132.20 pence. This marks an increase from the earlier session high of 135.40 pence.
