Cellnex, Europe's largest mobile tower operator, will launch an €800 million ($823 million) share buyback program this year to boost shareholder remuneration amid a stronger-than-expected recovery and low share prices.

In a statement sent late Tuesday to the Spanish Securities and Exchange Commission (CNMV), the Spanish company informed that the share buyback will begin once the sale of its Irish business is completed - scheduled for the first quarter of 2025 - and will be completed by December at the latest.

Cellnex's board of directors also approved increasing the amount of the equity swap first announced in November 2023 to a maximum of €550 million, up from €150 million previously, equivalent to around 19.2 million shares at current prices. In addition, it extended the maturity of the swap from May 2025 to June 2026.

The company's shares have fallen nearly 44% since September 2021, and 19% in the past year. CEO Marco Patuano told reporters on a call Tuesday that this was due to market factors, such as higher-than-expected U.S. dollar rates.

In recent years, Cellnex has prioritized maintaining a high investment-grade rating from agencies and reducing debt. It now faces a balancing act as it seeks to raise the share price by bolstering shareholder payouts without losing the discipline that led to a strong rating.

Last March, Cellnex said it planned to spend a minimum of €3 billion in 2026-30 in dividends, as well as €7 billion through 2030 in potential share buybacks, industrial business opportunities and extraordinary dividends.

($1 = €0.9725)

(Reporting by David Latona; editing by Andrei Khalip; Spanish edition by Mireia Merino)