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HomeLatest NewsSabadell executes another 7.7% of its share buyback program for 15.6 million

Sabadell executes another 7.7% of its share buyback program for 15.6 million

Date: October 2, 2023 Time: 06:30:05

Banco Sabadell continues to advance with its share buyback. This time he runs another 7.7% of the total. In the third week of its share repurchase program, it has obtained 13.9 million treasury shares for a total of 15.6 million euros, which is equivalent to 7.7% of the total maximum amount of the repurchase, recorded at 204 million euros.

As reported by the bank to the National Securities Market Commission (CNMV), this movement is equivalent to 19.4% of its program, for which it has disbursed a total import of 39.6 million euros. In addition to a maximum amount of 204 million euros, the program is limited to a maximum number of shares of 562.6 million or 10% of share capital.

The purpose of the program, which began on June 3, is to reduce the entity’s share capital by amortizing the own shares to be acquired. In this way, the value of the titles that remain listed increases, so it is a different way of remunerating the shareholder.

Banco Sabadell intends to carry out the repurchase program so that the maximum price does not exceed 2.01 euros per share, a figure that corresponds to the tangible book value per share as of March 31, 2023. The repurchase must be finalized before February 2, 2024 and, in any case, when the maximum monetary amount is reached or the maximum number of shares constituting its object is acquired.

On the other hand, the credit rating agency Fitch Ratings Spain has maintained Banco Sabadell’s long-term rating at BBB- and has improved the outlook from stable to positive. The bank has informed the National Securities Market Commission (CNMV) that the outlook revision “mainly reflects Fitch’s expectations that Sabadell’s profitability will improve structurally due to the rise in interest rates.”

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.

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