SSE plc said on Monday it will initiate a share buyback program after shareholders elected to receive scrip dividends for the final dividend of its financial year ending March 31, 2026, exceeding the company’s policy cap.
A total of 22,138 shareholders chose scrip dividends over cash for the final dividend, covering 425,880,846 ordinary shares at a rate of 47.3 pence per share. The election reduced SSE’s cash funding requirement by £201,441,640 but pushed the overall scrip take-up to 37.18%, above the 25% limit set by the company.
To offset earnings dilution from the scrip program, SSE will issue 8,452,267 new ordinary shares on September 17, increasing its issued share capital by 0.70% excluding treasury shares. The scrip reference share price was set at 2,383 pence.
The share buyback will target up to 4,246,975 ordinary shares, with a maximum allocation of £105 million. The program, approved at SSE’s Annual General Meeting on July 16, is expected to conclude by March 31, 2027, and will comply with Chapter 9 of the UK Listing Rules as set by the Financial Conduct Authority.
