Essity's Class B Share Buyback Initiative in Early January
Essity Aktiebolag's Recent Class B Share Repurchase
During the week spanning from January 13 to January 17, Essity Aktiebolag (publ) carried out an impressive repurchase of 270,000 of its Class B shares. This buyback illustrates Essity's robust strategy to enhance shareholder value, as determined by the Board of Directors.
Continuing the Buyback Program
This share purchase is part of a larger commitment by Essity to buy back shares with a total budget of SEK 3 billion. This initiative was first unveiled on June 17, 2024, and aims to enhance shareholder returns significantly. The program is set to continue until the upcoming Annual General Meeting in 2025, adhering to relevant regulations established under EU Market Abuse Regulation (MAR).
Funding and Share Buyback Philosophy
The financing for this repurchase program is primarily derived from the company's operational cash flow, following the distribution of ordinary dividends. This approach is aligned with Essity's commitment to sustaining share buybacks as an integral part of its long-term capital strategy.
Details of the Share Repurchase
The Class B shares were bought back in specific quantities each day, and here are the summarized details:
Daily Transactions
On January 13, a total of 54,000 shares were bought at a weighted average price of SEK 291.0612, with a transaction value of SEK 15,717,305. The following days saw a consistent purchase of 54,000 shares, reflecting careful market engagement. By January 17, the average purchase price reached SEK 298.7988, culminating in a total daily transaction value of SEK 16,135,135.
Total Accumulated Data in Week 3
In total, during week 3, 2025, Essity accumulated 270,000 shares at a weighted average price of SEK 293.2886. The overall transaction value for this period reached a significant SEK 79,187,932. Furthermore, throughout the entire buyback program, the total purchases have now accumulated to 7,992,000 shares, with an average price of SEK 300.1548 and a cumulative transaction value surpassing SEK 2.39 billion.
Impact on Shareholding Structure
As of January 17, the total number of treasury shares held by Essity stands at 7,992,000 Class B shares. The overall shares in circulation amount to 702,342,489, which includes both Class A and Class B shares. This strategic decision reflects Essity's commitment to enhancing shareholder wealth and reflects positively on its financial health.
Further Information
Essity has assigned Danske Bank to execute these purchases on the Nasdaq Stockholm platform. The information provided aims to clarify the company's ongoing commitment to its shareholders and market stability.
Frequently Asked Questions
What is the purpose of Essity's share buyback program?
Essity's buyback program is intended to enhance shareholder value and is a strategic move within their capital allocation framework.
How many shares did Essity repurchase during week 3 of 2025?
Essity repurchased a total of 270,000 Class B shares during week 3 of 2025.
What is the financial source for the buyback?
The share repurchase is primarily funded by Essity's cash flow from current operations following the distribution of ordinary dividends.
What are the future prospects of the buyback program?
The buyback program is designed to continue until the Annual General Meeting in 2025, allowing for potential future share repurchases.
Who is responsible for executing the buybacks?
Danske Bank is tasked with executing the buybacks on behalf of Essity on the Nasdaq Stockholm platform.
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