Coca-Cola HBC AG on Monday said it intends to buy back up to 7.5 million shares, worth GBP225 million, with the majority of the shares expected to be cancelled.
The stock was trading up 2.8% early on Monday at 2,400.00 pence a share.
The soft-drinks bottling company said the purpose of the share purchase programme is to avoid dilution resulting from the issue of stock options and meet the requirements of its employee incentive scheme.
Coca-Cola HBC said it will cancel the majority of repurchased shares. Those that are not cancelled will be held in treasury until either awarded to employees under the company’s employee incentive scheme or a capital reduction is implemented.
The share repurchase plan is anticipated to complete no later than at the end of June next year.
Coca-Cola HBC AG (“Company”) announces that it purchased the following number of its ordinary shares of 6.70 CHF each (“ordinary shares”) on the London Stock Exchange through Credit Suisse Securities (Europe) Limited (“Credit Suisse”) as part of its share purchase programme announced on Monday 3 December 2018: Date of transaction 5 December 2018 Number of shares repurchased 75,000 Average price paid per share 2402.17 pence Lowest price paid per share 2395.00 pence Highest price paid per share 2433.00 pence Broker Credit Suisse The repurchased ordinary shares will be either cancelled upon receiving approval from the Company’s shareholders and subsequent implementation of a capital decrease or be used to meet the requirements of the Company’s employee incentive scheme. Until such approval is obtained or the shares are used to meet such requirements, the repurchased ordinary shares will be held in treasury. As at 6 December 2018, the Company’s issued share capital consisted of 371,813,729 ordinary shares, of which 354,925 ordinary shares are held by Coca-Cola HBC AG (including the repurchased shares) and 3,430,135 ordinary shares are held by its subsidiary, Coca-Cola HBC Services MEPE, in treasury. Therefore the total number of voting rights in the Company is 368,028,669 which may be used by shareholders as the denominator for calculations by which they will determine if they are required to notify their interest in, or a change to their interest in the Company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. Since announcing the share purchase programme on Monday 3 December 2018, the Company has purchased 340,000 of its ordinary shares. In accordance with Article 5(1)(b) of Regulation (EU) No 596/2014 (the Market Abuse Regulation), the schedule below provides detailed information about the transactions made by Credit Suisse on behalf of the Company as part of the share purchase programme.