Essity's Strategic Buyback Program Enhances Shareholder Value
Essity's Ongoing Commitment to Shareholder Value
Essity Aktiebolag is actively engaging in a remarkable buyback initiative, showcasing its dedication to increasing shareholder value. Recently, the company repurchased 270,000 Class B shares, reaffirming its ongoing strategy to utilize cash flow effectively.
The Buyback Program Details
This repurchase was part of a broader SEK 3 billion buyback program initiated by Essity. The program is scheduled to run until the company's forthcoming Annual General Meeting, with compliance ensured under the EU Market Abuse Regulation. This reflects a robust framework designed to protect investor interests while enhancing share value.
Financing the Buyback
Essity is financing this share buyback through its cash flow generated from current operations. The company aims to incorporate buybacks as a regular aspect of its capital allocation, indicating long-term planning that benefits its investors.
Class B Shares Repurchased
During the week, the acquisition of Class B shares occurred as follows:
- March 3, 2025: 54,000 shares at an average price of 298.0170 SEK.
- March 4, 2025: 54,000 shares at an average price of 305.1761 SEK.
- March 5, 2025: 54,000 shares at an average price of 303.2590 SEK.
- March 6, 2025: 54,000 shares at an average price of 297.9094 SEK.
- March 7, 2025: 54,000 shares at an average price of 297.8897 SEK.
In total, this bought back 270,000 Class B shares for an accumulated cost that reflects an average transaction value of approximately 300.4502 SEK per share, equating to an overall outlay of over 81 million SEK.
Total Buyback Insights
Since the initiation of the buyback program, Essity has accumulated a significant total of 9,882,000 shares, demonstrating its commitment to returning value to shareholders and reinforcing market confidence in the company.
Impact on Shareholding Structure
As of March 7, 2025, following these transactions, Essity's treasury shares have reached a total of 9,882,000 Class B shares. The overall share count of the company stands at 702,342,489 with a well-balanced representation of both Class A and B shares, ensuring a diversified shareholding structure.
These steps underscore Essity's strategic approach, aligning with its long-term goals of enhancing shareholder returns through prudent financial management and investment strategies.
Frequent Communication with Investors
Essity emphasizes transparent communication as part of its business ethos. Investors and stakeholders can reach out for further insights and inquiries to the Vice President for Investor Relations. This openness fosters trust and strengthens the relationship between the company and its shareholders.
Frequently Asked Questions
What is the purpose of Essity's share buyback program?
The buyback program aims to enhance shareholder value by returning capital to investors and reducing the number of shares in circulation.
How many Class B shares were repurchased in the recent week?
During week 10 of 2025, Essity repurchased a total of 270,000 Class B shares.
What is the impact of the buyback on Essity's share price?
Typically, share buybacks can lead to an increase in share price by reducing supply and signaling to the market the company's strong financial position.
How often does Essity conduct share buybacks?
Essity aims to conduct share buybacks regularly as part of its capital allocation strategy, responding to market conditions and operational performance.
Who can investors contact for more information?
Investors can reach out to Sandra Åberg, Vice President of Investor Relations, for any inquiries related to the buyback program or investor-related questions.
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