LSEG Announces Historic £3 Billion Share Buyback Program
London Stock Exchange Group (LSEG) has unveiled its most substantial share repurchase initiative to date, committing to buy back at least £3 billion of its shares over the coming twelve months. This strategic move comes as the FTSE 100 company confronts mounting pressures from activist investor Elliott Management and growing shareholder anxieties regarding the disruptive potential of artificial intelligence on its core operations.
Financial Performance and Market Reaction
The announcement follows a robust financial year for LSEG, which reported a staggering near-60 percent increase in pre-tax profit, reaching £2 billion. Revenue also saw healthy growth, climbing 5.8 percent to £9 billion. The market responded enthusiastically to the buyback news, with LSEG shares jumping more than six percent in Thursday morning trading to reach 8,276p. This surge provided a welcome reversal from earlier in the year when the stock experienced a sharp sell-off, declining over 10 percent amid a broader tech sector downturn fueled by investor fears about AI encroachment.
Navigating Activist Investor Pressure
LSEG's decision arrives amidst significant scrutiny from activist hedge fund Elliott Management, which has accumulated a major stake in the company. This development raised concerns among stakeholders that Elliott might push for strategic changes, including potentially relisting the company from London to New York or spinning off the London Stock Exchange operation into a separate entity. However, reports indicate that Elliott has privately assured the UK government it will not pursue a breakup of the group.
During a media briefing, LSEG Chief Financial Officer Michel-Alain Proch emphasized that the record buyback was not a tactical maneuver to appease Elliott. He stated unequivocally that the board's decision "had nothing to do" with the timing of their awareness regarding the activist investor's significant stake accumulation. When questioned about whether Elliott's involvement caused concern among executives, Chief Executive David Schwimmer responded diplomatically, noting, "We have had plenty of discussions with shareholders whom I would describe as 'active' and this is a healthy part of the capital markets. We welcome constructive engagement with all shareholders, and we are trying to do the right thing for all our shareholders."
Expansion of Private Market Platform
Simultaneously, LSEG provided updates on its innovative Pisces private market platform, revealing that additional firms are poised to join "imminently." The company stated it is "in active discussions with market participants looking to use the venue imminently," highlighting that this newly approved platform "will expand the options available to private companies and their shareholders, including employees, to access liquidity and provide investors with the opportunity to invest in the next generation of high-growth private companies."
While Schwimmer declined to specify the pipeline of prospective Pisces sign-ups or provide estimates for year-end participation, the platform recently welcomed its first confirmed participant: a vehicle containing shares in a £1.3 billion venture capital firm that supports technology spin-outs from Oxford University. This development marks a significant milestone for LSEG's efforts to diversify its offerings and capture growth in the private markets segment.
The £3 billion buyback program represents a substantial increase from the £2.1 billion repurchase completed in 2025, underscoring LSEG's confidence in its financial position and strategic direction despite the dual challenges of activist investor influence and technological disruption.
