TBC Bank Group PLC launched a £20 million program to repurchase up to 1.8 million of its ordinary shares.
The two-stage share buyback program will be run by Renaissance Securities (Cyprus) Ltd., or RenCap, and will be carried out from July 29 until Sept. 30.
TBC said in its July 29 filing that it believes its shares are undervalued and the buyback will lead to "an opportunity to create economic value."
The first stage of the program, involving the repurchase of no more than 470,000 shares, will end Aug. 14 at the latest. RenCap will conduct the first stage under irrevocable instructions to make trading decisions independently of TBC. The bank will use shares bought back during this stage of the program to meet obligations stemming from share option programs and other allocations of shares to employees.
Redemptions beyond the 470,000 shares will be put toward reducing capital.
Repurchasing decisions during the second stage will be made by RenCap and/or any other broker appointed by TBC, in accordance with the company's directions.