British American Tobacco (BAT) announced yesterday that it will pay the last instalment of its interim dividend at the beginning of February next year while it has intensified a share purchase program.
On February 3 next year, BAT will pay out the fourth and final instalment of 58.88 pence for its interim dividend. BAT has already paid three instalments of similar amounts after it declared a 235.52 pence interim dividend in February this year.
The company also announced that it bought back 69 132 ordinary shares from Merrill Lynch International as part of its buy back program.
This was in accordance with the authority granted by shareholders at the company's annual general meeting in April this year. The authority enabled the company to purchase its own ordinary shares.
“Following the purchase and cancellation of these shares, the company will have 2.2 billion ordinary shares in issue (excluding treasury shares) which carry voting rights and will hold 133.2 million ordinary shares in treasury,” said the company.
Tadeu Marocco, CEO for BAT recently said the company had intensified “targeted investments in the U.S. combustible business, with early signs” of improvement.
“We have improved our financial flexibility and initiated a sustainable buyback program and continued strong cash generation in the sale with a partial stake in our ITC associate,” he said. - Tawanda Karombo.
BUSINESS REPORT