Recruitment company Accedo has finished a EUR 400 million share repurchase program and now initiates a new share buyback plan worth up to EUR 250 million.
Adecco Launches EUR 250 Million Share Buyback Program
Swiss-based staffing giant, Adecco, has announced a new share buyback program worth up to EUR 250 million. The program will be executed on the existing second trading line on SIX Swiss Exchange.
According to the company's announcement, repurchased shares will be cancelled after formal shareholder approval, which is expected to be sought at the upcoming 2014 General Shareholders Meeting. The meeting will also resolve on the reduction of share capital through the cancellation of repurchased shares.
Share buybacks can sometimes be treated favorably compared to dividends under Swiss federal tax law. In this case, shares purchased on the second trading line are subject to the Swiss federal withholding tax of 35% on the difference between the buyback price and the nominal value of CHF 1.00.
A share buyback typically involves cancelling treasury shares or repurchasing shares to reduce the total number of outstanding shares, often with the aim of increasing share value or returning capital to shareholders. This can be done via a capital reduction resolution approved at a shareholders meeting.
The new share buyback program was announced in the Q2 2013 press release. However, details about Adecco's 2014 General Shareholders Meeting decisions on reducing share capital or the implications for Swiss federal withholding tax are not yet available.
For more precise authoritative details, we recommend consulting Adecco’s official 2014 General Meeting minutes or press releases and Swiss tax advisory sources.
Contact information for Adecco's Investor Relations and Corporate Press Office is available below:
- Investor Relations: [email protected], +41 (0) 44 878 89 89
- Corporate Press Office: [email protected], +41 (0) 44 878 87 87
It is important to note that actual results could differ materially from current expectations due to various factors such as global GDP trends, changes in regulation, intense competition, integration of acquired companies, changes in ability to attract and retain personnel or clients, potential impact of IT disruptions, and adverse developments in existing commercial relationships, disputes or legal and tax proceedings.
This release contains forward-looking statements regarding the future. These forward-looking statements involve risks and uncertainties. No duty is assumed to update any such forward-looking statements. Further information can be obtained from our Corporate Investor Relations.
Adecco's new share buyback program, worth up to EUR 250 million, is a form of investing in business that aims to increase share value or return capital to shareholders. The cancellation of repurchased shares, subject to Swiss federal withholding tax, suggests a possible future business decision.
