Nutreco fish feed. (Photo Credit: Nutreco)
NETHERLANDS
Wednesday, August 27, 2014, 00:50 (GMT + 9)
Giant Dutch feed producer Nutreco announces that it has started a share buy-back programme of EUR 100 million to optimise the efficiency of the balance sheet and enhance future earnings per share.
This programme follows the completion of a share buy-back programme launched to cover future stock dividends and employee stock plans.
Pursuant to the share buy-back programme announced in June, up to and including 25 August 2014, Nutreco purchased 1,400,000 of its ordinary shares at an average price of EUR 31.03 per share, for a total consideration of EUR 43.4 million. Herewith the share buy-back programme to cover future stock dividends and employee stock plans is completed.
The company currently holds approximately 2 per cent of its ordinary shares and the issued share capital per today amounts 70,237,364 shares.
The share buy-back programme, which now begins, will ultimately end on 31 January 2015, unless Nutreco shares for the overall maximum amount of EUR 100 million have been repurchased prior to that date. In that case the programme will end on the date on which this maximum is reached.
The EUR 100 million is between 4 to 5 per cent of Nutreco's issued share capital. The shares to be repurchased under this share buy-back programme will be cancelled in due course, resulting in a reduction of Nutreco's outstanding share capital.
The share buy-back programme will be carried out in accordance with Nutreco's Articles of Association and within the mandate given by the Annual General Meeting of shareholders on 27 March 2014. Within the limits set at that meeting, the price to be paid for the Nutreco shares will be between the nominal value of the shares and 110 per cent of the average closing price of the last five preceding trading days on the NYSE Euronext Amsterdam stock exchange.
Nutreco has mandated ABN AMRO to undertake the share buy-back programme. ABN AMRO makes its trading decisions with regard to the number of shares and the timing of the purchases independently of Nutreco.
The company says it will provide updates on the progress of the programme by means of weekly press releases.