Essity’s Class B Share Buyback Highlights Financial Strategy

Author: Evelyn Baker Updated: 02-24-2025 06:55 AM

Essity's Class B Share Buyback Overview

In the latest developments regarding Essity Aktiebolag (publ), it was announced that during a specific timeframe, an impressive total of 270,000 Class B shares were repurchased as part of the company's strategic buyback program. This initiative, which was established by the Board of Directors, is a vital aspect of Essity's ongoing corporate strategy to manage capital effectively and enhance shareholder value.

Details of the Buyback Program

Program Financial Outline

The recent repurchase is part of a broader buyback program that encompasses a financial commitment of SEK 3 billion. This initiative was initially announced several months ago and is designed to operate until the upcoming Annual General Meeting. All actions taken during the buyback process comply with the EU Market Abuse Regulation (MAR) and relevant regulations to ensure transparency and legality.

Financing the Buyback

Essity's approach to financing this share buyback primarily stems from cash flow generated by ongoing operations. The goal is not only to complete these transactions but to establish buybacks as a routine part of Essity's capital allocation framework, aligning with its long-term financial objectives.

Class B Share Repurchase Breakdown

During the specified week, shares were repurchased daily, showcasing a consistent strategy in market engagement. Below is an overview of the shares repurchased each day and the weighted average price:

Daily Repurchase Summary

From February 17 to February 21, a total of 270,000 shares were acquired at varying prices, reflecting the dynamic nature of the stock market. The share purchases were facilitated through transactions conducted on Nasdaq Stockholm by Danske Bank, acting on behalf of Essity.

Impact of the Buyback on Shareholder Holdings

As of the last day of the reported week, Essity's treasury shares amounted to 9,342,000 Class B shares. This is a part of a larger total share count, which includes over 700 million shares distributed between Class A and Class B categories. The activity signals Essity's commitment to maintaining a robust capital structure and prioritizing shareholder interests.

Communication and Investor Relations

For inquiries and further communication regarding the buyback program, Sandra Åberg, Vice President of Investor Relations, has been appointed as the contact person. Investors looking for clarity on the company's financial strategies are encouraged to reach out.

Frequently Asked Questions

What is Essity's reason for buying back shares?

Essity's share buyback is part of a strategic move to enhance shareholder value and manage capital allocation effectively.

How much is Essity investing in the buyback program?

Essity has committed a total of SEK 3 billion for its ongoing buyback of Class B shares.

Who manages the buyback transactions?

The buyback transactions on the Nasdaq Stockholm are managed by Danske Bank on behalf of Essity.

What is the expected duration of the buyback program?

The buyback program is expected to run until the next Annual General Meeting.

How does the buyback affect Essity's total share count?

The buyback program contributes to a reduction in the total outstanding shares, thereby potentially increasing the value of remaining shares for investors.

About The Author

Greetings, I'm 32-year-old author and financial specialist Evelyn Baker. My introduction into the financial industry started with an economics degree and continued with a wealth of experience in wealth management and financial consulting. My great passion over the years has been assisting people and companies in making wise, well-informed decisions to reach their financial objectives.

My goal with writing is to simplify difficult financial ideas into understandable, doable guidance. My goal in writing many books and articles is to make personal finance understandable to everyone, irrespective of their experience or background. I want to give readers the information they need to take charge of their financial futures, from investing and retirement planning to budgeting and saving.

Along with my writing, I lead webinars and workshops where I provide doable advice and methods for achieving financial success. To reach a larger audience, I also frequently contribute to financial blogs and publications. My method is always to offer doable, real-world guidance that can actually improve people's lives.

Aside from my job, I like to cook, travel, and experience other cultures. I work hard to apply my belief in the value of a balanced life to my financial counsel. My goal in working is to encourage and enable people to succeed financially so they may lead the best lives possible.

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