CFD trading platform Plus500 (LSE: PLUS) shares rallied by 7.7% to 1,497p on Tuesday. The surge came on the heels of Plus500’s announcement that it had successfully repurchased approximately 7.3 million shares, representing 8.2% of its share capital, from Odey Asset Management. The deal, valued at £101.3 million, was executed at a rate of 1,383p per share.
In a statement, Plus500 highlighted the strength of its balance sheet and the prevailing circumstances as factors that prompted the decision to repurchase shares. The company’s board believes this move to be in the best interest of all shareholders. Additionally, Plus500 seized the opportunity to acquire shares at an attractive price, aligning with its capital allocation and shareholder return policy.
The news of Plus500’s buyback comes in the wake of recent developments at Odey Asset Management. Over the weekend, the firm announced the removal of its founder, Crispin Odey, from the partnership. This decision followed allegations of sexual misconduct levelled against him. The departure of Odey, a prominent figure in the investment industry, has undoubtedly shaken the company.
The swift execution of the share repurchase demonstrates Plus500’s commitment to capitalising on advantageous opportunities that arise within the market. By taking advantage of the current circumstances, the company seeks to further strengthen its position and deliver value to its shareholders.
