Unilever completes first tranche of share buyback scheme, begins second

Unilever announced the successful completion of the first tranche of its share buyback programme on Friday, to buy shares with an aggregate market value equivalent of €3bn.

The FTSE 100 consumer products giant also confirmed the beginning of a second tranche to buy back shares with an aggregate market value equivalent of €3bn, in line with the group's stated objectives.

On 19 April, Unilever announced its intention to buy back shares with an aggregate market value equivalent of up to €6bn, saying it was in line with its objective of targeting a net debt-to-EBITDA ratio of 2.0x, and its goal to return the expected after-tax proceeds upon completion of the Spreads disposal to shareholders, “unless more value-creating acquisition alternatives arise”.

On 2 July, the group announced the completion of the Spreads disposal and on 19 July, it announced its intention to complete the €6bn share buyback programme before the end of the year.

“This second tranche of the programme will commence on 20 July … and will be to buy back Unilever plc ordinary shares and Unilever NV ordinary shares - or depositary receipts in respect of such ordinary shares - with a total market value equivalent to €3bn for all shares to be bought back,” the company’s boards said in their statement.

The second tranche would take place within the limitations of the authority granted to the boards of each of Unilever plc and Unilever NV by their general meetings, held on 2 May and 3 May respectively, under which the maximum number of shares to be bought back by Unilever plc in the tranche would be 91,397,655, and for Unilever NV the maximum would be 179,280,872.

“The respective amounts which will be bought back in the form of Unilever plc ordinary shares and in the form of Unilever NV ordinary shares - or depositary receipts in respect of such ordinary shares - will be determined in due course at the group's discretion.

“The group has entered into instructions with Deutsche Bank AG, London Branch and UBS AG, London Branch to conduct the programme on its behalf and to make trading decisions concerning the timing of purchases under the programme independently of the group.”