The share repurchase program
Mediobanca announced the start of an ambitious share repurchase program, which will start on November 12. This initiative was approved by the Ordinary Shareholders’ Meeting on October 28, after receiving the green light from the European Central Bank (ECB). The plan involves the purchase of a maximum of 37,500,000 ordinary shares, corresponding to approximately 4.5% of the share capital, with a spending limit set at 385 million euros
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Objectives of the repurchase plan
The repurchase program has a dual purpose: on the one hand, it aims to increase earnings per share through the cancellation of the repurchased shares; on the other, it intends to support external growth transactions through acquisitions and to finance compensation plans based on financial instruments for Group personnel. Mediobanca expects that the program will end within twelve months of the authorization of the ECB, making this strategy a key element in optimizing shareholder value
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Market impact and equity performance
However, the news of the repurchase program failed to lift Mediobanca’s stock, which recorded an 8% loss on the stock market, influenced by a quarterly report that showed lower than expected revenues and a cut in interest margin forecasts for the entire year. This decline placed Mediobanca in negative terms compared to the rest of the Ftse Mib securities, highlighting the challenges that the institution faces in the current context
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Economic and geopolitical context
In a broader context, Chinese stock markets closed lower due to geopolitical tensions and uncertainties about the national economy. The Shanghai index fell by 1.39%, while the Shenzhen index lost 0.65%. The Hong Kong stock exchange also registered a significant decline of 2.84%. These events demonstrate how global dynamics can influence the performance of companies and financial markets, making strategies such as Mediobanca’s even more crucial for long-term stability and growth
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