PARIS: Retail giant Carrefour has announced a significant share buyback, acquiring 25 million of its own shares from Galfa, a subsidiary of the Motier group.
This transaction, representing approximately 3.5% of Carrefour’s capital, will see Galfa’s remaining stake in the company adjust to 7.71% of the capital and 13.3% of the voting rights.
This buyback is a key part of Carrefour’s ambitious €700 million share repurchase initiative set for 2024. The Board of Directors gave their unanimous nod to the deal, which was deemed fair by Cabinet Finexsi’s assessment. The agreed sale price stands at €365 million, with payment scheduled over the coming days. The shares will be transferred post the detachment of the annual dividend, following the Annual General Meeting slated for May 24, 2024.
Alexandre Bompard, Carrefour’s Chairman and CEO, expressed his enthusiasm for the accelerated share buyback, highlighting the “friendly and trusting relationship” between Carrefour and Motier. Philippe Houzé, Vice-Chairman of Motier and Carrefour’s Board, reaffirmed Motier’s commitment as a long-term shareholder, endorsing the strategy led by Bompard and his team.
In addition to the buyback, Galfa has committed to a 6-month lock-up period on its Carrefour holdings, with the option to extend the maturity of call options on 10 million shares until December 2025, signaling continued confidence in Carrefour’s future.
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