Pets at Home has announced the start of its plans to buy back £50m worth of shares from its investors.
The Cheshire-headquartered retailer first revealed it would carry out a share buyback programme when it announced its full year results in May.
A share buyback can be seen as an alternative, tax-efficient way to return money to shareholders. Once shares are repurchased they are considered cancelled, but they can be kept for redistribution in the future.
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The programme will be undertaken in two tranches. In respect of the first tranche, the company has entered into non-discretionary instructions with Numis Securities to conduct a share buyback programme on its behalf and to make trading decisions independently of Pets at Home.
Under the terms of the engagement with Numis, the first tranche programme will be for maximum aggregate consideration of £25m.
The first tranche programme will commence today, June 20, and will end on or before September 30.
Pets at Home said the sole purpose of the programme is to reduce the company's share capital.
The second tranche of the programme is expected to be undertaken by HSBC.
Pets at Home said that further details "will be announced in due course".
