Stellantis Announces Launch of Third Tranche of Its 2024 Share Buyback Program
Stellantis N.V. (NYSE: STLA) has announced the launch of the third tranche of its 2024 Share Buyback Program, covering up to €1 billion of the total €3 billion program. This tranche will run from August 1, 2024, to November 29, 2024. The company plans to cancel most of the acquired shares, except for up to €0.5 billion worth, which will be used for employee stock purchase plans and equity-based compensation. This move aims to strengthen the ownership culture within Stellantis without diluting existing shareholders. The buyback will be executed under shareholder authorization, with a maximum of 10% of the company's capital and a purchase price cap of 110% of the market price.
Stellantis N.V. (NYSE: STLA) ha annunciato il lancio della terza tranche del suo Programma di Riacquisto Azionario 2024, che coprirà fino a 1 miliardo di euro del totale del programma di 3 miliardi di euro. Questa tranche sarà valida dal 1 agosto 2024 al 29 novembre 2024. L'azienda prevede di annullare la maggior parte delle azioni acquistate, eccetto un valore fino a 0,5 miliardi di euro, che sarà utilizzato per i piani di acquisto di azioni da parte dei dipendenti e per la compensazione in base all'equity. Questa mossa mira a rafforzare la cultura della proprietà all'interno di Stellantis senza diluire i diritti degli azionisti esistenti. Il riacquisto sarà eseguito sotto l'autorizzazione degli azionisti, con un massimo del 10% del capitale della società e un limite al prezzo di acquisto del 110% del prezzo di mercato.
Stellantis N.V. (NYSE: STLA) ha anunciado el lanzamiento de la tercera tranche de su Programa de Recompra de Acciones 2024, que cubrirá hasta 1 mil millones de euros del total de 3 mil millones de euros. Esta tranche estará vigente desde el 1 de agosto de 2024 hasta el 29 de noviembre de 2024. La compañía planea anular la mayor parte de las acciones adquiridas, excepto hasta 0,5 mil millones de euros que se utilizarán para los planes de compra de acciones por parte de empleados y compensación basada en acciones. Este movimiento tiene como objetivo fortalecer la cultura de propiedad dentro de Stellantis sin diluir a los accionistas existentes. La recompra se llevará a cabo bajo la autorización de los accionistas, con un máximo del 10% del capital de la empresa y un límite de precio de compra del 110% del precio de mercado.
스텔란티스 N.V. (NYSE: STLA)는 2024 주식 재매입 프로그램의 세 번째 트랜치를 출시한다고 발표했습니다. 이는 전체 30억 유로 프로그램의 일환으로 10억 유로에 해당합니다. 이 트랜치는 2024년 8월 1일부터 2024년 11월 29일까지 진행될 예정입니다. 회사는 취득한 주식 대부분을 취소할 계획이며, 5억 유로 상당의 주식은 직원 주식 구매 계획 및 주식 기반 보상에 사용될 것입니다. 이 조치는 기존 주주의 희석 없이 스텔란티스 내에서의 소유 문화 강화를 목표로 합니다. 매입은 주주 승인 하에 실시되며, 회사의 자본 최대 10% 및 시장 가격의 110%에 해당하는 구매 가격 상한이 설정됩니다.
Stellantis N.V. (NYSE: STLA) a annoncé le lancement de la troisième tranche de son Programme de Rachat d'Actions 2024, couvrant jusqu'à 1 milliard d'euros du programme total de 3 milliards d'euros. Cette tranche s'étendra du 1er août 2024 au 29 novembre 2024. La société prévoit de faire annuler la plupart des actions acquises, sauf pour un montant pouvant atteindre 0,5 milliard d'euros, qui sera utilisé pour des plans d'achat d'actions par les employés et pour des compensations basées sur des actions. Cette initiative vise à renforcer la culture de propriété au sein de Stellantis sans diluer les actionnaires existants. Le rachat sera effectué sous l'autorisation des actionnaires, avec un maximum de 10% du capital de l'entreprise et un plafonnement du prix d'achat à 110% du prix du marché.
Stellantis N.V. (NYSE: STLA) hat die dritte Tranche seines Aktienrückkaufprogramms 2024 angekündigt, die bis zu 1 Milliarde Euro des Gesamtprogramms von 3 Milliarden Euro abdecken wird. Diese Tranche läuft vom 1. August 2024 bis zum 29. November 2024. Das Unternehmen plant, die meisten der erworbenen Aktien zu annullieren, mit Ausnahme von Aktien im Wert von bis zu 0,5 Milliarden Euro, die für Mitarbeiteraktienkaufpläne und aktienbasierte Vergütungen verwendet werden. Dieser Schritt zielt darauf ab, die Besitzkultur innerhalb von Stellantis zu stärken, ohne die bestehenden Aktionäre zu verwässern. Der Rückkauf wird mit der Genehmigung der Aktionäre durchgeführt, mit einem Maximum von 10% des Unternehmenskapitals und einer Kaufpreisschwelle von 110% des Marktpreises.
- Stellantis is executing a significant €3 billion share buyback program, demonstrating confidence in its financial position
- The company plans to cancel most of the repurchased shares, potentially increasing value for existing shareholders
- Up to €0.5 billion of repurchased shares will be used for employee stock plans, fostering an ownership culture without dilution
- The buyback program is structured to comply with market regulations and protect shareholder interests
- The large-scale buyback may reduce the company's cash reserves, potentially affecting future investment capabilities
- The program's execution is subject to market conditions, which could impact its effectiveness or timing
Insights
Stellantis' announcement of the third tranche of its 2024 Share Buyback Program is a significant development for investors. The company plans to repurchase up to
Key points to consider:
- The buyback represents approximately
1.6% of Stellantis' market capitalization, based on current valuation. - The company intends to cancel most of the repurchased shares, which should increase earnings per share and potentially boost stock price.
- Up to
€0.5 billion of shares will be used for employee stock plans, promoting an ownership culture without diluting existing shareholders. - The
110% price cap on purchases provides a safeguard against overpaying in volatile market conditions.
While share buybacks can be viewed positively, investors should also consider whether this capital allocation strategy is the best use of funds compared to alternatives like debt reduction or increased R&D investment, especially given the automotive industry's ongoing transition to electric vehicles.
Stellantis' share buyback program reflects a broader trend in the automotive industry, where companies are balancing between investing in future technologies and returning value to shareholders. This strategic move could have several market implications:
- Investor sentiment may improve, potentially leading to increased demand for Stellantis stock.
- The buyback could provide support for the stock price, especially during market downturns.
- It may signal management's view that the stock is undervalued, which could attract value investors.
However, it's important to contextualize this within the industry landscape. As legacy automakers face pressure from pure-play EV manufacturers and tech companies entering the mobility space, capital allocation decisions become increasingly scrutinized. Investors should weigh this buyback against Stellantis' progress in electrification and autonomous driving technologies.
Moreover, the program's execution over time and its impact on Stellantis' financial flexibility will be key factors to monitor, especially given the cyclical nature of the auto industry and potential economic headwinds.
Stellantis Announces Launch of Third Tranche of Its 2024 Share Buyback Program
AMSTERDAM, August 1, 2024 - Stellantis N.V. (“Stellantis” or the “Company”) announced today that pursuant to its Share Buyback Program (or the “Program”) announced on February 15, 2024, covering up to
This agreement will cover a maximum amount of up to
The Company intends to cancel the common shares acquired through its
The buyback of common shares in relation to this announcement will be carried out under the authority granted by the general meeting of shareholders held on April 16, 2024, up to a maximum of
As of today, the remaining authorization stands at approximately 246 million shares and the Company held in treasury a total of 81,500,174 common shares equal to
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About Stellantis
Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is one of the world’s leading automakers aiming to provide clean, safe and affordable freedom of mobility to all. It’s best known for its unique portfolio of iconic and innovative brands including Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. Stellantis is executing its Dare Forward 2030, a bold strategic plan that paves the way to achieve the ambitious target of becoming a carbon net zero mobility tech company by 2038, with single-digit percentage compensation of the remaining emissions, while creating added value for all stakeholders. For more information, visit www.stellantis.com.
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For more information, contact:
Fernão SILVEIRA +31 6 43 25 43 41 – fernao.silveira@stellantis.com
communications@stellantis.com
www.stellantis.com
FORWARD-LOOKING STATEMENTS
This communication contains forward-looking statements. In particular, statements regarding future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, future financial and operating results, the anticipated closing date for the proposed transaction and other anticipated aspects of our operations or operating results are forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on Stellantis’ current state of knowledge, future expectations and projections about future events and are by their nature, subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them.
Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the ability of Stellantis to launch new products successfully and to maintain vehicle shipment volumes; changes in the global financial markets, general economic environment and changes in demand for automotive products, which is subject to cyclicality; Stellantis’ ability to successfully manage the industry-wide transition from internal combustion engines to full electrification; Stellantis’ ability to offer innovative, attractive products and to develop, manufacture and sell vehicles with advanced features including enhanced electrification, connectivity and autonomous-driving characteristics; Stellantis’ ability to produce or procure electric batteries with competitive performance, cost and at required volumes; Stellantis’ ability to successfully launch new businesses and integrate acquisitions; a significant malfunction, disruption or security breach compromising information technology systems or the electronic control systems contained in Stellantis’ vehicles; exchange rate fluctuations, interest rate changes, credit risk and other market risks; increases in costs, disruptions of supply or shortages of raw materials, parts, components and systems used in Stellantis’ vehicles; changes in local economic and political conditions; changes in trade policy, the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other changes in tax laws and regulations; the level of governmental economic incentives available to support the adoption of battery electric vehicles; the impact of increasingly stringent regulations regarding fuel efficiency requirements and reduced greenhouse gas and tailpipe emissions; various types of claims, lawsuits, governmental investigations and other contingencies, including product liability and warranty claims and environmental claims, investigations and lawsuits; material operating expenditures in relation to compliance with environmental, health and safety regulations; the level of competition in the automotive industry, which may increase due to consolidation and new entrants; Stellantis’ ability to attract and retain experienced management and employees; exposure to shortfalls in the funding of Stellantis’ defined benefit pension plans; Stellantis’ ability to provide or arrange for access to adequate financing for dealers and retail customers and associated risks related to the operations of financial services companies; Stellantis’ ability to access funding to execute its business plan; Stellantis’ ability to realize anticipated benefits from joint venture arrangements; disruptions arising from political, social and economic instability; risks associated with Stellantis’ relationships with employees, dealers and suppliers; Stellantis’ ability to maintain effective internal controls over financial reporting; developments in labor and industrial relations and developments in applicable labor laws; earthquakes or other disasters; risks and other items described in Stellantis’ Annual Report on Form 20-F for the year ended December 31, 2023 and Current Reports on Form 6-K and amendments thereto filed with the SEC; and other risks and uncertainties.
Any forward-looking statements contained in this communication speak only as of the date of this document and Stellantis disclaims any obligation to update or revise publicly forward-looking statements. Further information concerning Stellantis and its businesses, including factors that could materially affect Stellantis’ financial results, is included in Stellantis’ reports and filings with the U.S. Securities and Exchange Commission and AFM.
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FAQ
What is the total value of Stellantis' (STLA) 2024 Share Buyback Program?
When does the third tranche of Stellantis' (STLA) 2024 Share Buyback Program start and end?
How much of Stellantis' (STLA) repurchased shares will be used for employee stock plans?
What is the maximum percentage of capital Stellantis (STLA) can buyback under this program?
