Ibersol to buy back €37 million in own shares

 In Food and drink, Foodstuffs and beverges, News, Restaurants

Ibersol, a fast-food franchise company that controls brands like KFC Portugal, KFC Spain, Pans & Company Portugal and Spain, and Pizza Hut Portugal and Spain, has announced a plan to buy back €37.4 million of its own shares.

The move comes within weeks of it having closed a €32 million share buyback plan announced last year but which fell short of its goals to buyback at least 10.29% of its capital dispersed on the stock market. The present share buyback will run until 2025.

The company wants to buy up to a maximum of €4,151,481 ordinary shares. Companies choose buybacks for company consolidation, equity value increase, and to appear financially attractive. Buybacks are typically financed with debt, which can strain cash flow.

In this case, according to a communiqué posted on Portugal’s securities regulator site (CMVM), the goal of the buyback is to reduce Ibersol’s share capital by shredding a maximum of 4,151,481 ordinary shares acquired through the programme.

When the previous share buyback plan terminated on 31 May 2024, Ibersol ended up by holding 844,759 shares, representing 1.9% of total share capital, having only managed to secure 19.38% of the total percentage of shares it had wanted to buyback under the programme.
The company says the programme aims to release excess capital.