By Michael Elkins
Stellantis NV (NYSE:STLA) announced Thursday that the automaker, pursuant to its share buyback program announced on February 22, has signed a share buyback agreement with an independent investment firm that makes its trading decisions concerning the timing of purchases independently of Stellantis.
This agreement relates to the first tranche of the program. This tranche will cover a maximum amount of up to €500 million.
The program was approved in February for up to €1.5 billion, to be executed on the market with the intent to cancel the common shares acquired through the share buyback program.
The first tranche of the program shall start on March 17, 2023 and end no later than June 19, 2023. Common shares purchased under the program will be canceled in due course.
Following the share buyback transaction for 69.1M shares (2.2% of the company’s capital) executed on September 15, 2022, the remaining authorization stands at approximately 244M shares, which is expected to be adequate to cover this program, as well as any repurchase(s) of the 99.2M shares currently owned by Chinese JV partner Dongfeng Corporation under the terms announced on July 15, 2022.
Shares of STLA are up 0.68% in mid-day trading on Thursday.