Asset manager Abrdn announced a £300m share buyback programme this morning as it looks to put excess cash back in shareholders’ pockets.
Bosses at the FTSE-100 investor said today a first phase of the programme would claw back £150m worth of shares from investors, overseen by bankers at Goldman Sachs.
The purchase of shares will run from today and ending no later than 30th December this year, Abrdn said in a statement.
Shares in the firm were the fastest risers on London’s flagship index this morning after the news, jumping over eight per cent in early trading.
But the buyback comes after a sustained slide in the past six months however, with the firm shedding around a third of its value since January.
Citigroup downgraded the firm to ‘sell’ on Friday as it predicted a grim outlook for European asset managers amid market volatility.
“We see downside risks for almost all names, but see the biggest risk of disappointment at Abrdn and Jupiter, both of which we downgrade to sell”, analysts said.