Adrecco finishes a EUR 400 million share repurchase program and initiates a new one worth up to EUR 250 million.
Adecco Announces New Share Buyback Program
In a significant move aimed at returning value to shareholders and optimizing its capital structure, global HR solutions provider Adecco has announced a new share buyback program with a total value of EUR 250 million.
Details of the Program
The buyback program, which will be executed on the existing second trading line on SIX Swiss Exchange, aims to repurchase up to EUR 250 million worth of shares. The primary objective is to enhance shareholder value and improve capital efficiency. The buyback will be carried out in the open market, depending on market conditions and within regulatory requirements.
Adecco plans to carry out the repurchase over a period following the announcement, although the exact timeframe is typically subject to market conditions and regulatory guidelines. The group has already demonstrated its confidence in its financial position and commitment to delivering long-term value to shareholders by successfully completing a EUR 400 million share buyback programme.
Impact on Shareholders
By purchasing its own shares, Adecco aims to reduce the number of outstanding shares, which can lead to an increase in earnings per share (EPS) and potentially support the stock price. In September 2013, the group repurchased 9,721,446 shares, equal to 5.14% of the share capital.
Risks and Challenges
While the buyback program offers potential benefits, it is important to note that numerous factors could cause or contribute to differences in actual results from the company's current expectations. These factors include global GDP trends, demand for temporary work, changes in regulation of temporary work, intense competition in the markets, integration of acquired companies, changes in the company's ability to attract and retain qualified internal and external personnel or clients, and the potential impact of disruptions related to IT.
Services Offered
Adecco, a Fortune Global 500 company based in Zurich, Switzerland, is the world's leading provider of HR solutions. The group offers a wide variety of services, connecting more than 650,000 associates with over 100,000 clients every day. These services fall into the broad categories of temporary staffing, permanent placement, career transition and talent development, as well as outsourcing and consulting.
For further information about the share buyback program, interested parties can contact Adecco's Corporate Investor Relations at [email protected] or by calling +41 (0) 44 878 89 89. The press office contact is available at [email protected] or by calling +41 (0) 44 878 87 87. The financial agenda for 2013/2014 includes Q3 2013 results on November 6, 2013 and Q4/FY 2013 results on March 12, 2014.
It is also important to note that the forward-looking statements in this release are not guarantees of future performance, and actual results could differ materially from the company's current expectations. Shares purchased on the second trading line are subject to a Swiss federal withholding tax of 35% on the difference between the buyback price and the nominal value of CHF 1.00. The repurchased shares will be cancelled after approval at the 2014 General Shareholders Meeting.
Adecco is registered in Switzerland (ISIN: CH0012138605) and listed on the SIX Swiss Exchange (ADEN).
- Adecco, a global HR solutions provider, offers services ranging from temporary staffing and permanent placement to career transition and talent development, as well as outsourcing and consulting.
- The new share buyback program by Adecco, worth EUR 250 million, is aimed at optimizing its capital structure and returning value to shareholders.
- The potential risks and challenges for the buyback program include global economic trends, competition, regulatory changes, and potential disruptions related to IT.
- As part of its wide array of services, Adecco also focuses on business growth and financial management, helping clients with various aspects of their operations.
