2/13/2019, 3:44 PM (Source: TeleTrader)
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Whitbread announces £2.5B share buyback program

British hotel and restaurant company Whitbread plc announced on Wednesday it will be increasing its share buyback program by at least £2 billion following the successful sale of its brand Costa Coffee to Coca Cola. Whitbread previously approved a £500 million buyback program which started in January and is set to conclude at the end of April 2019.

"Following the sale of Costa for £3.9 billion, there will be capital which is surplus to Whitbread’s ability to invest at a strong return on capital in the near term. As a result, Whitbread intends to return at least £2.5 billion to shareholders, subject to any more value-creating alternatives," the company said in its statement.

Further, Whitbread announced it was looking to expand the number of rooms of its flagship brand Premier Inn by more than 50% in the United Kingdom and by tenfold in Germany.

Breaking the News / MD