Ahold Delhaize has commenced a share buyback programme worth €1 billion, announced in November of last year.
The maximum duration of the programme is up to the end of 2024, subject to extension of the buyback authority by the general meeting, the company noted.
Through this programme, Ahold Delhaize aims to reduce its capital by cancelling all or part of the common shares acquired through the programme.
The initiative its part of its 'Leading Together' strategy, seeking to maintain a balanced approach between funding growth in key channels and returning excess liquidity to shareholders.
The buyback programme will adhere to relevant laws and regulations, the existing authority granted at Ahold Delhaize’s 2023 annual general meeting of shareholders on 12 April 2023 and the authority (if granted) by the annual general meeting on 10 April 2024.
The programme represents approximately 37.8 million shares, or 4% of total shares outstanding, at the current share price, the retailer added.
In November of this year, the supermarket group trimmed its 2023 earnings guidance and flagged margin weakness in the United States, its main market.
Share Buyback Programme
Ahold Delhaize conducts share buyback programmes in one or several tranches,
For each tranche, the company mandates an intermediary to execute the purchase of the shares during open and closed periods in compliance with the Market Abuse Regulation (MAR) and within pre-defined execution parameters.
Shares are bought in the market and accumulated on the treasury share account until cancellation.
Pursuant to the relevant statutory provisions, cancellation may not come into effect before two months after a resolution to cancel the shares is adopted and publicly announced.
Although Ahold Delhaize is committed to the programme, the share buyback initiative is subject to changes in corporate activities, such as but not limited to material M&A activity.