Eni’s board of directors will propose to the shareholders’ meeting on 11 May a new buyback program for a minimum outlay of 1.1 billion euros, which can be increased according to the scenario of the Brent price, and the cancellation of own shares purchased in 2021. It also resolved “the possible issue of one or more bonds, to be placed with institutional investors, for a total amount not exceeding 3 billion euros or equivalent in another currency, to be issued in one or more tranches by March 31, 2024 “.
In particular, as regards the buyback, «Eni will update its assessment on the scenario related to the buyback program in July and October. In the presence of Brent price scenarios higher than 90 dollars per barrel, Eni will proceed to increase the overall value of the buyback program by an amount equal to 30% of the associated incremental Free Cash Flow (in any case the buyback program cannot be exceeding a total of 2.5 billion euros) and for a maximum number of shares equal to 10% of the ordinary shares into which Eni’s share capital will be divided following the cancellation of the treasury shares purchased in 2021 ».
The shareholders’ meeting, convened in an extraordinary session for 11 May next, is in fact also called to cancel 34,106,871 treasury shares, acquired as part of the previous buyback program. The new plan for the purchase of treasury shares, explains Eni, “is aimed at offering the company a flexible option to pay shareholders an additional remuneration with respect to the distribution of dividends, with the intention of sharing the generation of value linked to progress Eni in its strategic path and the improvement of the scenario ».
The board will submit to the shareholders’ meeting, which will be convened in 2023 for the approval of the financial statements at 31 December 2022, the proposal to cancel the treasury shares purchased up to the date of the meeting, in execution of the new buyback program, with the specification that “the cancellation will be made without reducing the share capital in consideration of the absence of the par value of Eni shares.
The purchases of treasury shares – continues the note – will be made at a price identified in compliance with any regulatory requirements and market practices accepted at the time in force. This price must not deviate in decrease or increase of more than 10% with respect to the official price recorded for the Eni share in the session of the Euronext Milan market, organized and managed by Borsa Italiana, of the day before each single operation “. Purchases can be made on regulated markets according to the operating methods established in the regulations for the organization and management of the markets. To date, Eni holds 65,838,173 treasury shares equal to approximately 1.83% of the share capital (of which, following the proposed cancellation, 31,731 will remain. 302 treasury shares equal to approximately 0.89% of the post-cancellation share capital).