BMW AG unveiled its latest share buyback program on Tuesday, with a total valuation of up to €2 billion ($2.25 billion), marking the company’s third initiative of its kind in recent years. The management board has approved the program, which is scheduled to begin this month and will be completed by April 30, 2027.
BMW’s share buyback program will include both ordinary and preferred shares, with a maximum allocation of €350 million specifically for preferred shares. The company has stated that additional details regarding the initiative will be revealed prior to and throughout its implementation.
The latest initiative builds on BMW’s previous share buyback effort, the Share Buy-Back Programme 2023/2025, which was carried out under the authorization granted at the Annual General Meeting in May 2022. The earlier program focused on redeeming shares to reduce share capital while also facilitating the transfer of shares to employees as part of an employee share scheme.
BMW’s decision to launch another buyback initiative underscores its continued dedication to enhancing its capital structure and maximizing shareholder value. Buyback programs are often used by companies to distribute excess capital to shareholders, strengthen financial performance, and demonstrate confidence in future growth.
The execution of BMW’s latest buyback program will be under close evaluation by investors and market analysts, as it could impact the company’s stock performance and financial stability.
BMW’s stock rose by 1.29% ahead of the disclosure, outperforming Volkswagen, Mercedes-Benz, and Porsche AG, which saw gains between 0.6% and 1.4%. Meanwhile, the DAX, the leading index, recorded a modest increase of around 0.5%.
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