Reinet is stepping up its share buybacks. The Luxembourg-based investment company announced on Thursday 13 August a seventh programme, for a maximum amount of €250m and up to 8 million shares. Originally subject to approval at the annual general meeting, the scheme has now been given the green light by shareholders.
The buybacks are due to begin on 18 August and may continue until 15 December, at the latest. This programme comes at a time when Reinet’s financial situation has changed radically. The sale of its 49.5% stake in Pension Insurance Corporation (PIC) to Athora for around €3.3bn has significantly bolstered its cash position. The holding company then held €5.477bn in cash and liquid investments, representing 83% of its net asset value of €6.6bn.
Increase in dividends
It is against this backdrop of abundant liquidity that Reinet is stepping up its share buybacks. The holding company had announced as early as 18 June its intention to allocate up to €500m to this programme, limited to 16.5 million shares and running until its 2027 annual general meeting. The first tranche was completed on 30 July with the buyback of 2.5 million shares. Shareholders will also receive a dividend of €0.435 per share, which has now been approved and is payable on 2 September. This represents a 17.6% increase on the €0.37 paid out last year.
The repurchased shares may, in particular, be used as a consideration for future acquisitions. Purchases will be made via the Johannesburg Stock Exchange through an intermediary and may not exceed, in any single trading session, 25% of the average daily trading volume over the previous 20 trading sessions. The Rupert family has also stated that it will not sell any shares for the duration of the programme.
