Ryanair will seek shareholder approval to buy back more of its shares after spending €150 million snapping up stock that was beaten down following last week's UK Brexit referendum.
“Having completed almost €735 million i share buybacks between 20th February and June 23rd 2016, the board authorised the repurchase of €150 million worth of shares at an average price of just under €11.85 in the immediate aftermath of the UK referendum vote last week,” Ryanair chief executive Michael O’Leary said on Friday. “We believe repurcahses at these levels will enhance shareholder returns.”
However, having reached the 5 per cent buyback limit approval at last year’s annual general meeting, the company is seeking investor approval to allow it buy back more stock over the next 15 months.
Mr O’Leary saw the value of his 3.8 per cent stake in the low-cost carrier slump by €158 million to €499 million between Friday and the close of business on Monday, as Ryanair’s stock slumped. They have since rallied by almost 12 per cent to €11.70.
