Aristocrat Leisure Limited (ASX:ALL) Announces A$750 Million Share Buy-Back Program
Capital Management Update
Aristocrat Leisure Limited (ASX: ALL) has announced an on-market share buy-back program of up to A$750 million, extending its proactive capital management strategy. This new initiative follows the completion of a previous A$1.85 billion buy-back program in January 2025.
Financial Performance
Following the receipt of US$600 million from the sale of Plarium Global Limited earlier this month, Aristocrat maintains a leverage ratio below its targeted net debt leverage. The strong business performance and robust cash flow allow the company to invest in growth initiatives, including strategic mergers and acquisitions, and return cash to shareholders through dividends and the buy-back program.
Debt Repayment
Aristocrat intends to use a portion of the proceeds from the Plarium sale to repay its US$250 million Term Loan B debt facility by the end of March 2025, ahead of its maturity on 24 May 2029.
Executive Comments
Chief Executive Officer & Managing Director Trevor Croker said, “Aristocrat’s robust balance sheet and strong cash flow generation enables us to reinvest in the business and continue to return cash to shareholders via dividends and share buy-backs. Upon completion of the program announced today, Aristocrat will have returned A$2.6 billion to shareholders via share buy-backs. We will actively assess growth opportunities, including strategic acquisitions and investment in organic initiatives, on an ongoing basis.”
Motley Fool contributor Matt Burgess has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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