Business · Companies · 6 hrs ago
Freenet plans share buyback of up to €75 million
Freenet plans to buy back up to €75 million of its shares during the current and/or next financial year.
The German mobile provider said it will use part of the money it expects from selling its Ceconomy shares.
The sale is expected to bring Freenet about €150 million, and the company took into account the initial €76 million cost of acquiring all of waipu.tv when setting the buyback size.
Freenet plans to cancel the shares it buys back, which would mathematically increase earnings per share.
Investors reacted positively, and Freenet shares rose 1.5% on Tradegate compared with their Xetra closing price.
The buyback may take place in either of the next two financial years, but Freenet did not give a more specific schedule.
Freenet plans to buy back its own shares for up to €75 million.
The company said the buyback would take place in the current and/or next financial year.
The shares bought back are to be cancelled, which would mathematically increase earnings per share.
Freenet plans to fund the buyback from about €150 million it expects to receive from the sale of Ceconomy shares.
The programme’s size also takes into account the initial €76 million purchase price for the full acquisition of waipu.tv.
- Who
- Freenet, the mobile network provider.
- What
- It plans to buy back its own shares for up to €75 million and cancel them.
- When
- In the current and/or next financial year. The announcement was made on Thursday evening.
- Where
- Not stated.
- Why
- The company plans to use part of the proceeds from selling Ceconomy shares; cancelling the shares would mathematically increase earnings per share.
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- Buyback
- Up to €75 million
- Timing
- Current and/or next financial year
- Funding
- Part of about €150 million expected from the sale of Ceconomy shares
- waipu.tv acquisition
- Initial purchase price of €76 million
- Share cancellation
- Shares bought back are to be cancelled