Experian PLC (LSE:EXPN) shares climbed 2.4% to 2,759p after the FTSE 100 group announced the launch of a US$1bn share buyback on the back of its weak share price and recent trading that it said remained strong.
Expecting to end the current financial year to March in a "favourable leverage position", the credit checking group said this enabled it to continue to both invest in the business and return excess capital to shareholders.
With its shares having sunk from an all-time high last July to their lowest in over two years in recent weeks, the board said this was an "opportunity to drive additional shareholder value". In other words, buying the shares while they are cheaper.
Experian said this did not change its existing capital allocation and dividend policy.
Starting immediately and with an end-date of June 2027, JP Morgan has been tasked with adjusting the "pace and form" of the buyback based on market conditions, while future tranches will be based on ongoing assessments of the group's capital needs.
The company said the purpose of the programme is to reduce the number of shares in issue as well as meeting obligations arising from employee share plans of circa $200 million.