As part of the implementation of its share buyback programme, authorised by the General Meeting of 16 June 2020, Kering has entrusted an instruction to an investment services provider with the objective of acquiring, no later than the 16 April 2021 deadline and depending on market conditions, a maximum of 250,000 Kering ordinary shares.
This figure represents approximately 0.2% of the company’s share capital as of January 15, 2021. Objective? To cover bonus share allocation plans and other long-term incentive plans remunerated in Kering shares for the benefit of employees, specifies the group in a press release published on Monday.
The unit purchase price of the shares may not exceed the maximum price set by the General Meeting of Shareholders on June 16, 2020, i.e. 600 euros per share, excluding acquisition costs, bringing the total maximum amount allocated to the share buyback program to 7.6 billion euros.
It should be recalled that Kering’s share price dropped again this morning on the Paris Stock Exchange and fell to its lowest level since the beginning of November, at 528 euros, i.e. -1.10% at the opening.
Kering has indeed disappointed the market over the last six months of its 2020 fiscal year. The reason for this: investors did not welcome the slowdown in sales of its flagship brand Gucci. The group’s flagship brand, which had nearly €10 billion in sales in 2019, has thus stalled in 2020 at €7.4 billion.
Read also > KERING POSTS A REASONABLE DECLINE IN ITS ANNUAL RESULTS
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