Royal Dutch Shell plc has announced today that they are planning to buyback shares. The company noted that the share buyback was made possible by shareholders voting in favor of it at the 2011 Annual General Meeting.
In a company announcement, Shell said, “The purpose of the share buy-back programme is to offset dilution created by the issuance of shares for the Company’s Scrip Dividend Programme.”
Shell plans on only buying “B ordinary shares,” which thereafter will be canceled out. Shell could potentially buyback “A shares,” however, due to Dutch tax constraints it is not as cost-effective for the company as it would be hit by Dutch dividend tax withholding.
Royal Dutch Shell stock closed trading today for a positive gain at the $64.12 price mark, it had opened for trading at $61.39 for a total positive difference of $2.73 dollars.
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