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Janus Henderson shares on watch after US$200m share buyback launch

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The Janus Henderson Group plc (ASX: JHG) share price could be on the move on Friday after the release of an announcement relating to its share buyback programme.

What did Janus Henderson announce?

During the fourth quarter of FY 2019, the leading fund manager completed US$13 million of share buybacks, concluding its US$200 million share buyback programme.

However, much to the delight of shareholders, the board was not done there. With the release of its quarterly update, management revealed that the board had approved a new on-market buyback programme in 2020.

As with the other buyback, the company advised that it intends to spend up to US$200 million to buy its ordinary shares on the NYSE and its CDIs on the ASX over a period of 12 months from a yet to be finalised date.

When will it start?

This morning the company announced that its share buyback will commence today and will continue until the company’s annual general meeting in 2021. Though, the company reserves the right to end the buyback earlier.

According to the release, any repurchases will be effected in accordance with the company’s general authority to repurchase shares and CDIs granted by its shareholders at its last annual general meeting and in accordance with all relevant regulatory requirements.

The company has appointed Merrill Lynch Equities (Australia) to purchase its CDIs. After which, the CDIs will then be transferred to the company by way of one of more special crossings.

Given that its shares are down over 23% since this time last month due largely to the broad market selloff, this certainly appears to be an opportune time for the company to launch a share buyback.

Janus Henderson isn’t the only company undertaking a buyback. Qantas Airways Limited (ASX: QAN) recently announced its intention to buyback upwards of $150 million of its shares through an off market share buyback. Management advised that this was made possible due to its strong operating cash flows and disciplined approach to capital allocation.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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