Stellantis announces launch of third tranche of its 2024 share buyback program

Francesco Armenio
Stellantis announces third tranche of €3B share buyback program, signing €1B agreement with independent financial company.
Stellantis US

Stellantis has announced that, as part of its share buyback program made public on February 15, 2024, for a maximum amount of 3 billion euros (total purchase price excluding additional costs) to be executed on the market, it has signed a share buyback agreement for the third tranche of its program with a financial company that will make its purchase decisions independently from the automotive group.

Stellantis has signed a share buyback agreement for the third tranche of its program

Stellantis Melfi Plant factory

The agreement will cover a maximum amount of 1 billion euros. The third tranche of the Program will begin on August 1, 2024, and end no later than November 29, 2024. The company plans to cancel the ordinary shares acquired under the 3 billion euros share buyback program, except for a portion of up to 0.5 billion euros which will be used for stock-based compensation and employee stock purchase plans. This is expected to support the benefits derived from expanding and strengthening the company’s share ownership culture among its teams, while avoiding dilution of existing shareholders.

The ordinary share purchase program will be implemented based on the authorization granted by the general shareholders’ meeting on April 16, 2024, which may be renewed or extended, up to a maximum of 10 percent of the company’s share capital. The purchase price per ordinary share will not exceed an amount equal to 110 percent of the market price of the shares on the NYSE, Euronext Milan, or Euronext Paris (as applicable).

The market price will be calculated as the average of the highest price recorded on each of the five trading days preceding the acquisition date, as shown in the official list of the NYSE, Euronext Milan, or Euronext Paris. Repurchases will be made under market conditions and in compliance with applicable rules and regulations, including the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052.

To date, the remaining authorized amount is approximately 246 million shares, and the Group owns a total of 81,500,174 ordinary shares, equivalent to 2.10 percent of the issued capital, including ordinary shares and special voting shares.