Essity's Strategic Buyback of Class B Shares Creates Market Buzz
In a notable move that reflects its ongoing commitment to enhancing shareholder value, Essity Aktiebolag (publ) conducted a substantial buyback of its Class B shares during the week of February 3 to February 7, 2025. This initiative, amounting to 270,000 shares, is part of a broader SEK 3 billion buyback program previously announced by the company on June 17, 2024.
This buyback strategy is designed to utilize the cash flow generated from operations, executed following the dividend payouts, thereby demonstrating Essity's intent to maintain a strong financial footing while returning capital to its shareholders. The recent buyback activity illustrates how Essity is leveraging its cash position to optimize shareholder returns, signaling confidence in its market position and operational strength.
The purchases were made across the Nasdaq Stockholm platform, managed by Danske Bank, showcasing both transparency and adherence to regulatory requirements under the EU Market Abuse Regulation, ensuring that all transactions were conducted within a safe and controlled trading environment.
The specifics of the share repurchase from February 3 to February 7 are detailed as follows:
In total, this week's transactions accounted for a daily average price of 276.8439 SEK and a cumulative value approaching 74.75 million SEK. Across the entirety of the buyback program, which commenced previously, Essity has successfully repurchased a total of 8,802,000 Class B shares, reflecting a calculated average cost of 298.6375 SEK per share, and an approximate total expenditure of 2.63 billion SEK.
As a result of this buyback initiative, Essity's treasury shares now stand at 8,802,000, a significant component of the company's ongoing capital management strategy. The total shares for Essity are reported to be 702,342,489, split between 58,973,654 Class A shares and 643,368,835 Class B shares.
Moving forward, Essity aims to implement these buybacks consistently over time as part of its capital allocation, a strategy designed to return value to shareholders while ensuring the company retains enough liquidity to invest in future growth opportunities. This share buyback program not only highlights Essity's robust operational cash flow but also reinforces a positive outlook for the company's long-term performance in the consumer goods sector.
For further insights, stakeholders are encouraged to reach out to Sandra Åberg, Vice President of Investor Relations at Essity, for any inquiries regarding this buyback program and its implications for the company's future capital strategies.
This buyback strategy is designed to utilize the cash flow generated from operations, executed following the dividend payouts, thereby demonstrating Essity's intent to maintain a strong financial footing while returning capital to its shareholders. The recent buyback activity illustrates how Essity is leveraging its cash position to optimize shareholder returns, signaling confidence in its market position and operational strength.
The purchases were made across the Nasdaq Stockholm platform, managed by Danske Bank, showcasing both transparency and adherence to regulatory requirements under the EU Market Abuse Regulation, ensuring that all transactions were conducted within a safe and controlled trading environment.
The specifics of the share repurchase from February 3 to February 7 are detailed as follows:
- - February 3, 2025: 54,000 shares at an average price of 276.9931 SEK, totaling around 14.96 million SEK.
- - February 4, 2025: 54,000 shares at 276.5188 SEK, amounting to approximately 14.93 million SEK.
- - February 5, 2025: Similar transactions were repeated with minor fluctuations: 54,000 shares at 275.8897 SEK for 14.90 million SEK.
- - February 6, 2025: Another 54,000 shares bought at 276.1588 SEK, aggregating to about 14.91 million SEK.
- - February 7, 2025: The week wrapped up with the purchase of 54,000 shares at a price of 278.6589 SEK, bringing the day's total to roughly 15.05 million SEK.
In total, this week's transactions accounted for a daily average price of 276.8439 SEK and a cumulative value approaching 74.75 million SEK. Across the entirety of the buyback program, which commenced previously, Essity has successfully repurchased a total of 8,802,000 Class B shares, reflecting a calculated average cost of 298.6375 SEK per share, and an approximate total expenditure of 2.63 billion SEK.
As a result of this buyback initiative, Essity's treasury shares now stand at 8,802,000, a significant component of the company's ongoing capital management strategy. The total shares for Essity are reported to be 702,342,489, split between 58,973,654 Class A shares and 643,368,835 Class B shares.
Moving forward, Essity aims to implement these buybacks consistently over time as part of its capital allocation, a strategy designed to return value to shareholders while ensuring the company retains enough liquidity to invest in future growth opportunities. This share buyback program not only highlights Essity's robust operational cash flow but also reinforces a positive outlook for the company's long-term performance in the consumer goods sector.
For further insights, stakeholders are encouraged to reach out to Sandra Åberg, Vice President of Investor Relations at Essity, for any inquiries regarding this buyback program and its implications for the company's future capital strategies.
Topics Financial Services & Investing）
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