COFACE SA announces a share buyback operation targeting a total amount of 30 million euros
IN THE SECOND PILLAR OF ITS FIT TO WIN PLAN, COFACE AIMS AT IMPROVING THE CAPITAL EFFICIENCY OF ITS BUSINESS MODEL.
The Group published today an estimated Solvency ratio of ~166%, above its target range.
In line with its approach to capital management, COFACE SA will start buying back its own shares with effect from 15 February 2018 and until October 2018 the latest, for a targeted total amount of 30 million euros.
Coface will appoint an investment services provider to execute the repurchases of shares in the open market during open and closed periods.
The buyback will be conducted within the framework approved by the Annual General Meeting held on 17 May 2017, which authorised a share buyback programme capped at 10% of the Group’s share capital, and if necessary, in the event of programme renewal, within the framework of authorisations which could be given by the Annual General Meeting to be held on 16 May 2018.
COFACE SA intends to cancel all repurchased shares.
CARINE PICHON, COFACE CFO AND RISK DIRECTOR, COMMENTED:
« We are pleased that the actions undertaken in the operating framework of our Fit to Win plan to strengthen our risk underwriting and optimise our reinsurance structure already allow us to return capital to our shareholders. The share buyback programme preserves the Group’s ability to finance its future development. The increased average length of our reinsurance agreements will allow improved visibility on Coface’s capital situation, while maintaining the high quality of our panel of reinsurers . »
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