Essity's Recent Class B Share Buyback Activity
Essity Aktiebolag (publ), a prominent global company in hygiene and health, has been actively engaged in capital management through a well-planned buyback program. From September 2 to September 6, 2024, the company successfully repurchased 270,000 of its Class B shares. This move underscores Essity's dedication to enhancing shareholder value while maintaining a solid capital structure.
Overview of the Buyback Program
This share repurchase is part of a broader SEK 3 billion buyback initiative that was recently announced. The program is set to continue until the next Annual General Meeting in 2025, in compliance with the EU Market Abuse Regulation and other relevant laws. This strategic decision is not solely about financial metrics; it also aims to bolster stakeholder confidence and reaffirm the company's commitment to sustainable long-term growth.
How the Buyback is Funded
Essity is funding this buyback using cash flow generated from its ongoing operations, following the distribution of dividends. The management team intends to incorporate share buybacks as a regular aspect of their capital allocation strategy, emphasizing their commitment to delivering value to shareholders over the long term.
Highlights of the Transactions
During the week of September 2-6, 2024, the buyback transactions were carried out on Nasdaq Stockholm by Danske Bank on behalf of Essity. The daily summary of these repurchases indicates a consistent approach:
Daily Purchase Summary
- September 2, 2024: 54,000 shares at an average price of SEK 311.0732
- September 3, 2024: 54,000 shares at an average price of SEK 312.8748
- September 4, 2024: 54,000 shares at an average price of SEK 314.6893
- September 5, 2024: 54,000 shares at an average price of SEK 316.7973
- September 6, 2024: 54,000 shares at an average price of SEK 317.6732
In total, 270,000 shares were repurchased during this week, with a weighted average price of SEK 314.6216, resulting in a total transaction value of SEK 84,947,821.
Overall Buyback Statistics
As of September 6, 2024, Essity has a total of 3,186,000 Class B treasury shares. The company’s total number of issued shares stands at 702,342,489, which includes 60,412,986 Class A shares. This careful management approach highlights Essity's proactive steps in handling its equity and strengthening its market position.
Contact Information for Inquiries
For further details regarding this buyback program, please contact Sandra Åberg, Vice President of Investor Relations, at +46 70 564 96 89 or via email at sandra.aberg@essity.com.
Frequently Asked Questions
What is the purpose of Essity's share buyback program?
The buyback program is designed to enhance shareholder value and support the company's capital strategy, showcasing its strong financial position.
How is the buyback financed?
Essity funds the buyback through cash flow from its ongoing operations, ensuring that it does not affect its ability to distribute dividends.
What are the details of the recent share purchases?
From September 2 to September 6, 2024, Essity repurchased 270,000 Class B shares at a weighted average price of SEK 314.6216.
Who manages these transactions?
All transactions are executed on Nasdaq Stockholm by Danske Bank on behalf of Essity.
What is the total number of shares held by Essity?
As of September 6, 2024, Essity holds 3,186,000 Class B treasury shares out of a total of 702,342,489 shares issued.
