DCC, the Irish conglomerate seeking to narrow its focus to energy, said it plans to start a \u00a3600 million (\u20ac694 million) share buyback in November, after confirming on Wednesday that it has completed the sale of its healthcare unit. <\/p>\n
Shares in the FTSE 100-listed company, which is led by chief executive Donal Murphy, rose 3.6 per cent in early trading. <\/p>\n
DCC said finalisation of the deal, following customary regulatory approvals, is a \u201cmaterial step in the group\u2019s strategy to simplify operations, maximise shareholder value and accelerate the growth of its energy business, the group\u2019s largest and highest returning division\u201d. <\/p>\n
The group said in April that it had agreed to sell its healthcare division \u2013 which spans the distribution of medical devices to developing and manufacturing nutritional supplements \u2013 for \u00a3945 million in cash, with \u00a3130 million of this deferred for payment within two years. The buyer is HealthCo Investment, which is owned by funds run or advised by London-based private equity firm Investindustrial Advisors.<\/p>\n
DCC subsequently went about buying back an initial \u00a3100 million of its stock to share the proceeds with investors. That programme is due to compete in the coming weeks. <\/p>\n
\u201cDCC also intends to launch a \u00a3600 million tender offer shortly after its interim results in November, with the expectation of completing the tender offer in December,\u201d it said in a statement on Wednesday. <\/p>\n
A further \u00a3100 million will be returned to shareholders following receipt of the unconditional deferred consideration, it added.<\/p>\n