The Spanish bank BBVA announced this Friday that next week it will launch the first tranche of a program of share buyback which will total a maximum of 3,500 million euros.
The group said that the first section will begin on November 22, in order to reduce BBVA’s share capital through the amortization of a maximum amount of 1,500 million euros.
The maximum number of shares of BBVA acquired in this phase will not exceed 637,770,016, equivalent to 9.6% of the capital stock.
At the end of October, BBVA announced that its board of directors had agreed to carry out a share buyback program of up to 10% of its capital for a maximum of 3,500 million euros, which it planned to carry out in 12 months.
The repurchase and subsequent amortization of treasury shares is an alternative form of shareholder remuneration to dividendsSince, by eliminating titles, those that are still in circulation increase their value by receiving a greater part of the benefits.
Reference-www.eleconomista.com.mx