Johnson Matthey kicks off £200m buyback in bid for extra capital
Johnson Matthey £200m share buyback programme will kick off today, as the chemicals giant looks to pool extra capital.
The first part of the scheme, managed by Citigroup, will seek to raise £100m between today and March next year.
The maximum number of shares Johnson Matthey is looking to shed under the programme is 19.3m.
The move followed the businesses departure from its battery materials unit, after revealing a £314m writedown in its November results.
Hargreaves Lansdown equity analyst Laura Hoy cautioned last month that incoming CEO Liam Condon has his “work cut out” as the group “scrambles” to find a new direction as the world transitions towards more sustainable practices and tech.
Hoy added that the business stepping away from its battery materials unit was the “answer to the shift towards electric vehicles and away from combustion engines, for which it makes catalytic converters”.
The chemicals giant also warned that its annual results would be towards the lower end of market expectations due to supply chain hang-ups in the auto industry and labour shortages at its health business.
The business reported an operating profit of £293m in the six months to September 30.