Deliveroo reveals plan to return £250m to shareholders

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Deliveroo has announced its intention to buy back £250m worth of shares through a premium tender.

The delivery company says it will offer at a price of between 115p and 135p per share, which represents a premium of 6% to 24% to the closing price of A Ordinary Shares on 26 September 2023, or a discount of 3% to a premium of 14% to the volume weighted average price of A Ordinary Shares over the past 90 days to 26 September 2023.

The tender offer opens on tomorrow (29 September) and will close at 1pm on 27 October 2023 with the proceeds are expected to be despatched to shareholders in early November 2023.

Directors including CEO Will Shu will not participate in the offer.

Deliveroo first announced its intention to return £250m to shareholders on 10 August, in addition to the £50m return it announced earlier in the year.

If the full £250m is not returned to shareholders, the board says it intends to undertake a second phase to return any remaining balance by way of an on-market share buyback and/or a special dividend to shareholders