Stellantis has announced the initiation of a €3 billion share buyback program, with the first tranche being executed through an agreement with an investment firm. The agreement, covering a maximum amount of €1 billion, signifies a significant financial move for the global automaker.
The investment firm will make trading decisions independently, ensuring an impartial process. The first tranche of the program is scheduled to commence on February 28, 2024, and conclude no later than June 5, 2024.
As part of the program, Stellantis plans to cancel most of the common shares acquired, aiming to optimize its capital structure. However, the company intends to retain up to €0.5 billion worth of shares for potential future use in employee stock purchase plans and stock-based compensation.
This decision is aligned with Stellantis’ goal of promoting an ownership culture among its team members, while also ensuring current shareholders maintain their ownership stakes.
The share buyback program reflects Stellantis’ confidence in its future growth prospects and its commitment to enhancing shareholder value.