Adidas AG: adidas launches new share buyback program
06/29/2021 | 08:33am EDT
DGAP-Ad-hoc: adidas AG / Key word(s): Share Buyback
adidas AG: adidas launches new share buyback program
29-Jun-2021 / 14:31 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
FOR IMMEDIATE RELEASE
Herzogenaurach, June 29, 2021
adidas launches new share buyback program
Through its new strategy 'Own the Game' adidas expects to drive significant top-line growth and strong bottom-line expansion until 2025. As a result, the company will generate substantial cumulative free cash flow over the next five years. adidas plans to share the majority of this - between ? 8 billion and ? 9 billion - with its shareholders through regular dividend pay-outs in a range of between 30% and 50% of net income from continuing operations, complemented with share buybacks.
Against this background and with the approval of the Supervisory Board, the Executive Board of adidas AG has decided today to launch a new share buyback program in the second half of 2021. Starting on July 1, 2021, the company plans to buy back shares worth up to ? 550 million until the end of the year. Taking into consideration the dividend payment of ? 585 million which was made in May, the total amount of cash which the company will return to its shareholders in 2021 is expected to exceed ? 1 billion.
While the company may use the repurchased shares for all purposes in accordance with the authorization granted by the Annual General Meeting in May 2021, the company intends to cancel most of the repurchased shares, which would reduce the number of shares and the share capital accordingly.