Euronext, a pan-European market
infrastructure, has announced the initiation of a share repurchase programme,
signaling a strategic move driven by strong cash generation capabilities. The
programme, with a maximum allocation of €200 million, underscores Euronext’s
commitment to a disciplined capital allocation strategy while maintaining its
deleveraging path and credit rating intact.
The share repurchase programme,
scheduled to commence from 31 July 2023 and lasting for a maximum duration of a
year, will be executed on Euronext Paris. The primary objective of the
programme is to reduce Euronext’s share capital, with all repurchased shares
set to be canceled.
Euronext has introduced the share
repurchase programme with the primary goal of diminishing its share capital.
The initiative allocates a maximum of €200 million, spanning from 31 July 2023,
and is slated to run for up to one year. Within the framework of the programme,
Euronext aims to repurchase approximately 3.0% of its ordinary shares, in
accordance with the authorization granted by the General Meeting on 17 May
2023, while observing a limit of 10.0%. This strategic move not only reflects
Euronext’s commitment to disciplined capital management but also aligns
seamlessly with its broader financial strategy, duly endorsed by stakeholders.
Euronext’s Non-Discretionary
Share Repurchase Arrangement
Euronext has established a
non-discretionary arrangement with a financial intermediary to conduct the
share repurchase, ensuring transparency and adherence to regulatory guidelines.
The Programme will be implemented in compliance with applicable rules and
regulations and the Commission Delegated Regulation. It is based on the
authority granted by the annual general meeting of shareholders on 17 May 2023.
Crucially, the share repurchase
programme is designed not to impact Euronext’s deleveraging trajectory or
credit rating. It will also be in harmony with maintaining the Group’s
financial flexibility to capitalize on market opportunities and adhere to its
existing dividend policy, with a pay-out of 50% of reported net income. Euronext commits to providing
regular updates on the progress of the programme in accordance with applicable regulations,
offering transparency to its stakeholders.
Euronext completes €200 million share repurchase programme https://t.co/vE4Joc6Knw
— Jake P. Noch (@Jake_P_Noch) January 3, 2024
Euronext and LCH SA Ensure
Orderly Clearing Flow Migration
Earlier, Finance Magnates reported that Euronext
was selling its 11.1 percent stake in LCH SA, a major clearing house, to
LCH Group Holdings Limited for €111 million. The deal, part of a buyback
program, is set to be finalized in early July 2023. Euronext acquired its stake
in LCH SA in 2017 through a share swap with LCH Group.
The divestment follows LCH
Group’s exercise of its buyback option, resulting in the early termination of
the existing derivatives clearing agreement between Euronext and LCH SA.
Euronext, headquartered in the Netherlands, will realize a tax-free capital gain
of around €40 million from the sale. The company, a significant player in
European capital markets, is known for operating stock markets across the
continent and expanded its reach by acquiring Borsa Italiana. Both Euronext and
LCH SA plan to collaborate on a smooth migration of clearing flows from LCH SA
to Euronext Clearing.
Euronext, a pan-European market
infrastructure, has announced the initiation of a share repurchase programme,
signaling a strategic move driven by strong cash generation capabilities. The
programme, with a maximum allocation of €200 million, underscores Euronext’s
commitment to a disciplined capital allocation strategy while maintaining its
deleveraging path and credit rating intact.
The share repurchase programme,
scheduled to commence from 31 July 2023 and lasting for a maximum duration of a
year, will be executed on Euronext Paris. The primary objective of the
programme is to reduce Euronext’s share capital, with all repurchased shares
set to be canceled.
Euronext has introduced the share
repurchase programme with the primary goal of diminishing its share capital.
The initiative allocates a maximum of €200 million, spanning from 31 July 2023,
and is slated to run for up to one year. Within the framework of the programme,
Euronext aims to repurchase approximately 3.0% of its ordinary shares, in
accordance with the authorization granted by the General Meeting on 17 May
2023, while observing a limit of 10.0%. This strategic move not only reflects
Euronext’s commitment to disciplined capital management but also aligns
seamlessly with its broader financial strategy, duly endorsed by stakeholders.
Euronext’s Non-Discretionary
Share Repurchase Arrangement
Euronext has established a
non-discretionary arrangement with a financial intermediary to conduct the
share repurchase, ensuring transparency and adherence to regulatory guidelines.
The Programme will be implemented in compliance with applicable rules and
regulations and the Commission Delegated Regulation. It is based on the
authority granted by the annual general meeting of shareholders on 17 May 2023.
Crucially, the share repurchase
programme is designed not to impact Euronext’s deleveraging trajectory or
credit rating. It will also be in harmony with maintaining the Group’s
financial flexibility to capitalize on market opportunities and adhere to its
existing dividend policy, with a pay-out of 50% of reported net income. Euronext commits to providing
regular updates on the progress of the programme in accordance with applicable regulations,
offering transparency to its stakeholders.
Euronext completes €200 million share repurchase programme https://t.co/vE4Joc6Knw
— Jake P. Noch (@Jake_P_Noch) January 3, 2024
Euronext and LCH SA Ensure
Orderly Clearing Flow Migration
Earlier, Finance Magnates reported that Euronext
was selling its 11.1 percent stake in LCH SA, a major clearing house, to
LCH Group Holdings Limited for €111 million. The deal, part of a buyback
program, is set to be finalized in early July 2023. Euronext acquired its stake
in LCH SA in 2017 through a share swap with LCH Group.
The divestment follows LCH
Group’s exercise of its buyback option, resulting in the early termination of
the existing derivatives clearing agreement between Euronext and LCH SA.
Euronext, headquartered in the Netherlands, will realize a tax-free capital gain
of around €40 million from the sale. The company, a significant player in
European capital markets, is known for operating stock markets across the
continent and expanded its reach by acquiring Borsa Italiana. Both Euronext and
LCH SA plan to collaborate on a smooth migration of clearing flows from LCH SA
to Euronext Clearing.