Adecco has concluded a EUR 250 million share buyback program and subsequently initiated a fresh program, allowing for potential purchases of up to an additional EUR 250 million of its own shares.
In a move to enhance shareholder value and manage its capital effectively, global workforce solutions provider, The Adecco Group, has launched a new share buyback program. The program, spanning from 2015 to 2017, aims to repurchase shares progressively over this period.
Purpose of the Share Buyback Program
The primary objectives of the program are threefold:
- Enhance shareholder value: By reducing the number of outstanding shares, Adecco aims to potentially increase earnings per share (EPS) and support the share price.
- Capital management: The buyback serves as an efficient way to return surplus cash to shareholders.
- Flexibility: Buybacks allow Adecco to adjust its capital structure according to market and operational circumstances, rather than committing to regular dividends or other fixed payments.
Details of the 2015-2017 Buyback
The program is authorised for shares up to a specific maximum number or value, typically aligned with Swiss legal limits (e.g., up to 10% of issued share capital). Shares can be acquired on the open market or through other methods, in compliance with regulatory rules. Purchases will be made within a price range set by the board to avoid market manipulation or excessive premium payments.
Shareholder Approval Process
The share buyback program requires approval from Adecco’s General Meeting of Shareholders. Shareholders will vote to authorise the board to initiate and conduct the buyback. The agenda will include the maximum number of shares to be repurchased, price limits, and time frame. Post-approval, the board will report on buyback progress in interim and annual reports, ensuring transparency.
Tax Implications
Buying back shares does not typically generate taxable income for the company but affects the equity structure and retained earnings. For shareholders, the transaction can affect individual tax liabilities depending on local jurisdictions. For example:
- Some shareholders may realise capital gains or losses if they sell shares back.
- Dividends equivalent payments are generally not involved in buybacks, potentially offering tax efficiency.
- Tax treatments vary based on residence, holding period, and specific local tax laws.
Timeline of Key Events
- The Q1 2015 results will be announced on May 7, 2015.
- The Annual General Meeting is scheduled for April 21, 2015, where shareholders will vote on the buyback program.
- The Q2 2015 results will be announced on August 11, 2015.
- The Q3 2015 results will be announced on November 5, 2015.
- The Q4 2014 results will be announced on March 11, 2015.
- The 2015 General Shareholders Meeting will resolve on the reduction of share capital through cancellation of the remaining repurchased shares from 2014.
- The new share buyback will be executed on the existing second trading line on SIX Swiss Exchange.
- The new share buyback program will be completed by November 10, 2017.
Contact Information
For further information about the share buyback program, please contact Adecco’s Corporate Investor Relations at [email protected] or +41 (0) 44 878 89 89. The new share buyback program has a maximum value of EUR 250 million.
- To increase the potential returns for their shareholders, The Adecco Group has initiated a three-year share buyback program from 2015 to 2017, targeting investing in its own shares as a means of enhancing shareholder value and capital management.
- As part of the share buyback program, Adecco aims to purchase shares in the finance market, either on the open market or through other methods, with the aim of adjusting its business capital structure according to changing market and operational conditions.
