Adidas has started the second stage of share repurchase
In early January, the company adidas announced the beginning of the second stage of a multi-year program to repurchase shares, which began in March 2018. The company intends to buy back its own shares in 2019 in the amount of about 800 million euros. During the first stage in 2018, the company bought out 5.1 million shares, which is equal to 2.5% of the company's authorized capital, spending 1 billion euros. The average purchase price of one share was 196.45 euros.
In total, within the framework of the current program, adidas plans to buy back its own shares in the amount of up to 3 billion euros in the period from March 2018 to May 2021. The buyback program complements the stated policy of adidas to pay annual dividends to shareholders in the amount of from 30% to 50% of net income from continuing operations.
The company plans adidas to cancel most of the repurchased shares.A total of 8.8 million treasury shares, which were received as a result of the previous stages of the buyback program, were canceled in October 2018, which reduced the number of shares of the company and the share capital.