Essity's Strategic Share Buyback Initiative in Week 39, 2024
Essity's Strategic Share Buyback Initiative
During the recent buyback program, Essity Aktiebolag (publ) repurchased a significant number of its own Class B shares, reflecting the company's commitment to enhancing shareholder value. Between the dates of September 23 and September 27, 2024, Essity successfully carried out the repurchase of 270,000 Class B shares.
Purpose of the Buyback
This share repurchase is part of a comprehensive SEK 3 billion buyback program that the company announced earlier this year. Essity aims to execute this buyback initiative strategically until the next Annual General Meeting in 2025, ensuring alignment with EU Market Abuse Regulation and related regulations. Through this program, the company seeks not only to optimize its capital allocation but also to reaffirm its dedication to long-term growth.
Details of the Repurchase
The buyback was primarily financed through cash flow generated from Essity’s ongoing operations post-dividend payouts. This approach underscores the company's intention to make share buybacks a regular aspect of its financial strategy. The total number of Class B shares repurchased indicates a robust commitment to returning value to shareholders while maintaining operational liquidity.
Share Repurchase Breakdown
Each day of the repurchase program saw significant activity, with shares being acquired on weekdays as follows:
- September 23, 2024: 54,000 shares purchased at an average price of SEK 314.2055
- September 24, 2024: 54,000 shares purchased at an average price of SEK 313.3164
- September 25, 2024: 54,000 shares purchased at an average price of SEK 314.4630
- September 26, 2024: 54,000 shares purchased at an average price of SEK 310.7654
- September 27, 2024: 54,000 shares purchased at an average price of SEK 311.9360
Throughout this week, a total of 270,000 shares were repurchased, amassing a total transaction value of approximately SEK 84,493,061. As Essity moves forward with its buyback strategy, the management remains committed to a share-oriented approach to capital allocation.
Current Holdings Post-Buyback
Following the completion of these transactions, as of September 27, 2024, Essity holds a total of 3,996,000 Class B treasury shares, with the total outstanding shares amounting to 702,342,489. This consists of 60,412,986 Class A shares and 641,929,503 Class B shares. This step in Essity's financial strategy illustrates the confidence the management has in the company's future prospects.
Contact Information for Further Inquiries
For those seeking additional information regarding the buyback program and its implications, Sandra Åberg, Vice President of Investor Relations, is available at +46 70 564 96 89. They encourage interested parties to reach out for clarifying details about Essity’s evolving financial landscape and capital allocation plans.
Frequently Asked Questions
What was the total number of Class B shares repurchased?
Essity repurchased a total of 270,000 Class B shares during the week of September 23 to September 27, 2024.
What was the purpose of the share buyback program?
The buyback program aims to enhance shareholder value and support Essity’s capital allocation strategy.
How is the buyback program financed?
The buybacks are financed through cash flow generated from current operations after dividend payments.
How many treasury shares does Essity hold now?
As of September 27, 2024, Essity holds a total of 3,996,000 Class B treasury shares.
Who can I contact for more information about the buyback program?
For inquiries, you can contact Sandra Åberg, Vice President of Investor Relations, at +46 70 564 96 89.
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