Rémy Cointreau: Share Capital Reduction by Cancellation of Treasury Shares

Rhea-AI Summary

On January 12, 2023, the Board of Directors of Rémy Cointreau decided to reduce the company's share capital by cancelling 1,000,000 treasury shares, representing 1.93% of its capital. This move follows the termination of its share buyback program announced on December 21, 2022. After the cancellation, Rémy Cointreau retains 396,701 treasury shares, or 0.78% of the reduced capital, with the new total share capital now standing at 81,257,113.60 euros divided among 50,785,696 shares.

Positive

• Cancellation of 1,000,000 treasury shares positively impacts earnings per share by reducing the total share count.
• Maintaining a small level of treasury shares (396,701) could provide flexibility for future financial strategies.

Negative

• The cancellation of shares indicates a potential lack of growth opportunities as the company is not reinvesting in expansion.
• Shareholder dilution risk could arise if additional share buybacks are not conducted efficiently.

PARIS--(BUSINESS WIRE)-- Regulatory News:

At its meeting on January 12, 2023, the Board of Directors of Rémy Cointreau (Paris:RCO) has, pursuant to authorization from the combined general meeting dated July 21, 2022, decided to reduce the share capital of the Company by cancelling 1,000,000 treasury shares (1.93 % of the share capital), as announced in the press release dated December 21, 2022, relating to the end of its share buyback programme.

Further to this cancellation, Rémy Cointreau owns 396,701¹ in treasury shares, or 0.78%¹ of its share capital after reduction.

The share capital now amounts to 81 257 113.60 euros, divided into 50 785 696 shares.

The details of the operations carried out under this buyback programme are available on Rémy Cointreau’s website: www.remy-cointreau.com in the section “Finance/Regulatory Information”.

About Rémy Cointreau

All around the world, there are clients seeking exceptional experiences; clients for whom a wide range of terroirs means a variety of flavors. Their exacting standards are proportional to our expertise – the finely-honed skills that we pass down from generation to generation. The time these clients devote to drinking our products is a tribute to all those who have worked to develop them. It is for these men and women that Rémy Cointreau, a family-owned French Group, protects its terroirs, cultivates exceptional multi-centenary spirits and undertakes to preserve their eternal modernity. The Group’s portfolio includes 14 singular brands, such as the Rémy Martin and Louis XIII cognacs, and Cointreau liqueur. Rémy Cointreau has a single ambition: becoming the world leader in exceptional spirits. To this end, it relies on the commitment and creativity of its 1,924 employees and on its distribution subsidiaries established in the Group’s strategic markets. Rémy Cointreau is listed on Euronext Paris.

¹ Excluding shares (in the process of being returned) from the liquidity contract terminated on January 6, 2023

View source version on businesswire.com: https://www.businesswire.com/news/home/20230112005694/en/

Investor relations: Célia d’Everlange / investor-relations@remy-cointreau.com

Media relations: Carina Alfonso Martin / press@remy-cointreau.com

Source: Rémy Cointreau

FAQ

What was decided by Rémy Cointreau's Board on January 12, 2023?

The Board decided to reduce the share capital by cancelling 1,000,000 treasury shares.

What percentage of the share capital does the recent cancellation represent?

The cancellation represents 1.93% of the share capital.

What is the new total share capital of Rémy Cointreau after the cancellation?

The new total share capital is 81,257,113.60 euros.

How many treasury shares does Rémy Cointreau hold after the cancellation?

After the cancellation, Rémy Cointreau holds 396,701 treasury shares, or 0.78% of its share capital.

What was the purpose of the share buyback program mentioned in the press release?

The share buyback program aimed to optimize the company's capital structure.