Stock Groups

Adidas launches new share buyback -Breaking

[ad_1]

© Reuters. The Adidas logo was pictured at celebrations of Adidas’ 70th Anniversary, which took place in Herzogenaurach (Germany), on August 9, 2019. REUTERS/Andreas Gerbert

BERLIN, (Reuters) – Adidas (OTC). It announced on Thursday that Adidas plans to buy back its shares up to 4 Billion Euros ($4.54 billion) by 2025. The company will also return the bulk of cash proceeds from Reebok.

German sportswear manufacturer said it would cancel almost all of the shares that were repurchased in the course of the program. It will also reduce share capital.

It stated that the buyback would begin in January 2022, and continue until 2025.

Adidas had announced this move earlier in the year as part of its plans to return approximately 9 billion euro to shareholders within five years through dividend payouts ranging from 30% to 50% of continuing income and share buybacks.

Harm Ohlmeyer (CFO) stated that the business would generate substantially more cash in the coming years.

According to the company, the bulk of cash proceeds from divestment at U.S.-based subsidiary Reebok will be passed on to shareholders. It expects that it can complete the transaction in the first quarter 2020.

Adidas announced in August that it would sell Reebok to Authentic Brands Group for as high as 2.1 billion Euros ($2.5 billion). The company is focusing on its core brand.

($1 = 0.8820 euros)

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. You should be aware of all the potential risks and expenses associated with trading in the financial market. It is among the most dangerous investment types.

[ad_2]