Smith & Nephew plc08.08.16
Smith & Nephew plc, the global medical technology business, announces that it has completed the divestiture of its Gynaecology business to Medtronic plc for $350 million.
The planned sale of the company’s Gynaecology business demonstrates its disciplined strategic approach to capital deployment. The company’s shareholders will benefit directly through a $300 million share buy-back program. The divestment is expected to be broadly neutral to adjusted earnings per share ('EPSA') in 2017, after the share buy-back, and to reduce EPSA by less than 1.0¢ in 2016.
The maximum pecuniary amount allocated to the buy-back program is $300 million and the maximum number of shares that will be purchased is estimated to be 18.3 million1 based on the prevailing share price and GBP/USD exchange rate. The buy-back program, the purpose of which is to reduce the Company's share capital, commences today and will end no later than 31 March 2017.
References
1For the purpose of the draft Commission Delegated Regulation on buy-back programs and stabilization measures (European Commission C(2016) 1357 final) supplementing the Market Abuse Regulation (EU) No 596/2014 (MAR) Article 5, the maximum number of shares to be purchased is 20 million.
The planned sale of the company’s Gynaecology business demonstrates its disciplined strategic approach to capital deployment. The company’s shareholders will benefit directly through a $300 million share buy-back program. The divestment is expected to be broadly neutral to adjusted earnings per share ('EPSA') in 2017, after the share buy-back, and to reduce EPSA by less than 1.0¢ in 2016.
The maximum pecuniary amount allocated to the buy-back program is $300 million and the maximum number of shares that will be purchased is estimated to be 18.3 million1 based on the prevailing share price and GBP/USD exchange rate. The buy-back program, the purpose of which is to reduce the Company's share capital, commences today and will end no later than 31 March 2017.
References
1For the purpose of the draft Commission Delegated Regulation on buy-back programs and stabilization measures (European Commission C(2016) 1357 final) supplementing the Market Abuse Regulation (EU) No 596/2014 (MAR) Article 5, the maximum number of shares to be purchased is 20 million.