Talgo launches a Share Buyback Program and increases earnings per share for shareholders - corporate
null Talgo launches a Share Buyback Program and increases earnings per share for shareholders
05 May 2022
Talgo launches a Share Buyback Program and increases earnings per share for shareholders
- The maximum amount of the program, which will benefit all shareholders, is 10 million euros
- 83% of shareholders decided to receive the flexible dividend in shares, increasing their stake in Talgo's share capital
Today, Talgo has launched its Share Buyback Program with the aim of reducing the Company's share capital through the redemption of its own shares, which will increase the earnings per share of its shareholders. The maximum amount of the Share Buyback Program will be 10 million euros, which will benefit shareholders.
This action is part of Talgo's flexible dividend that was approved at the last Annual General Shareholders' Meeting held on March 23, 2022. Following the execution of the flexible dividend where Talgo offered its shareholders the possibility of receiving the dividend in shares or cash, on April 28 the company announced that 83% of its shareholders decided to receive the dividend in shares, instead of cash, thus increasing their stake in Talgo's share capital, which is a clear sign of support and confidence of the shareholders in the future of the company.
The Share Buyback Program includes the subsequent redemption of the shares acquired, which will eliminate any dilutive effect on the shareholders who decided to receive their dividend in cash, and at the same time it will increase the stake of the shareholders who decided to receive their remuneration in shares, generating a real remuneration for all shareholders.
Talgo's Chairman, Carlos Palacio Oriol, recalled that "this new flexible dividend policy has a positive impact on all shareholders and once again demonstrates Talgo's commitment to them".
Talgo’s CEO, Gonzalo Urquijo, said: "The flexible remuneration system including the Share Buyback Program gives all shareholders the possibility to decide their remuneration, whether in cash or in shares. We are proud to announce that the majority of shareholders have decided to increase their stake in the company, which demonstrates their confidence in Talgo's future. It is thanks to the support of our shareholders that Talgo continues to be a reference in sustainable rail mobility".
The Share Buyback Program will remain in effect from May 5, 2022, until November 5, 2022, during which time Talgo will acquire a maximum number of treasury shares of 1,997,596 shares, which approximately represent 1.6% of share capital. The number of shares is equal to the new shares issued in the capital increase announced on April 28, which were distributed proportionally among shareholders who decided to receive their remuneration in shares.
Talgo S.A. is a leading company in the design, manufacture and maintenance of high-speed light trains with a manufacturing presence in seven countries such as Spain, Germany, Saudi Arabia and the United States, among others. The company is recognized worldwide for its innovative capabilities, unique and distinctive technology and reliability. Talgo is Renfe's main supplier of high-speed and ultra high-speed trains and the supplier of trains in the "Haramain" high-speed railway line project between Mecca and Medina in Saudi Arabia. Talgo is also the manufacturer chosen by the German operator Deutsche Bahn and the Danish operator DSB to decarbonize its network with the Talgo 230 long-distance trains.
For further information, please contact:
Aída Prados and Esther Almendros - Estudio de Comunicación
Phone no.: +34 91 576 52 50