Essentra PLC (LSE:ESNT) confirmed its intention to return £150mln to shareholders at the end of March, using the proceeds of selling off its filters and packaging divisions at the end of last year.
After consulting with major shareholders the FTSE 250-listed group has decided to structure the return through a combination of a £90mln special dividend and a £60mln share buyback.
A special dividend of roughly 29.8p will be paid to shareholders on 27 April.
A final dividend is intended to be paid in the normal way and will be announced at the results on 22 March.
Analysts estimate the buyback should take around eight to 12 months to complete, beginning after the results.
Shares in Essentra, which last autumn year fell below 200p for the first time since 2010, jumped 5% to 230.5p on Thursday morning.