Two Irish companies planning to return combined €170m to shareholders

Kenmare Resources said it is, this year, generating stronger free cash flow, providing an opportunity to deliver increased shareholder returns. 

Two Irish companies are planning to return more than a combined €170m to investors via separate share buyback programmes.

House building company Glenveagh Properties has commenced a programme – which may run until the end of next year – aimed at returning excess capital of up to €100m to shareholders. The plan is reliant on shareholder approval and market conditions.

Meanwhile, Irish mining firm Kenmare Resources has launched a buyback programme which will see the company purchase up to 13.5% of its issued ordinary shares.

The move will see Kenmare – which owns the Moma titanium mine in Mozambique – return up to £61.8m (€72.5m) to eligible shareholders through a tender offer.

Three years ago, Kenmare announced a dividend policy to return a minimum of 20% of after-tax profits to shareholders.

The company said it is, this year, generating stronger free cash flow, providing an opportunity to deliver increased shareholder returns. 

Kenmare announced, back in March, that it was targeting an increased dividend pay-out for 2021 of 25% of profit after tax.

Glenveagh told shareholders at its AGM in May that once its capital allocation priorities – namely, supply chain, land and work-in-progress investments – are met, excess capital would be returned to investors.

In an update, the company said it “continues to make good progress” in this regard, having invested around €70m in land opportunities so far this year.

Glenveagh’s latest share buyback plan follows the successful conclusion of its first such programme – just last month - under which shares to the value of €75m were repurchased.

Glenveagh's share price was up nearly 5.5%, while Kenmare shares rose nearly 2%.