BASF to Continue Share Buyback Program
German chemicals giant BASF plans to launch a corporate share buyback program worth up to €3 billion, beginning this month and stretching over nearly two years, until Dec. 31, 2023 at the latest.
Implementation is subject to a renewed authorization by the annual general meeting on Apr. 29, 2022. Following this, the group’s corporate parent, BASF SE, will cancel all repurchased shares and reduce its share capital accordingly.
The last buyback, totaling 10% of share capital, was initially approved by the May 12, 2017 annual meeting but expires on May 11, 2022. The new share repurchase is planned to be carried out on the electronic trading platform of the Frankfurt Stock Exchange (Xetra).
BASF said the decision to continue repurchasing shares reflects the positive business development and its divestments over the course of 2022. From 1999 to 2008, the company repurchased shares for around €9.9 billion and reduced the number of outstanding shares by around 29% altogether.
In the newest incarnation, BASF said available capital will be returned to shareholders, capital structure optimized and earnings per share increased. The chemical producer said it will continue to prioritize organic growth in its use of capital, while acquisitions are “currently of lower relevance.”
Author: Dede Williams, Freelance Journalist
