News ForFarmers
ForFarmers starts share repurchase, share price sharply higher
The listed ForFarmers is starting to buy back its own shares. CEO Yoram Knoop already hinted at this at the beginning of November when the operational progress report for the third quarter was presented.
ForFarmers will start the purchase program on Thursday 2 December, whereby the company can spend a maximum of €50 million. The animal feed group has decided on the purchasing program to 'make the balance sheet more efficient'. An independent financial intermediary carries out the purchase program. The program will be completed by 31 December 2022 at the latest.
The share buy-back program will be based on the authorization that the shareholders have given at the AGM in April this year. It states that a maximum of 10% of the company's issued shares can be repurchased. ForFarmers publishes a press release on the progress of the buyback program on the first trading day of the week.
Effect price
Recently gave Nico Inberg, in conversation with Boerenbusiness, already indicated that he expected a share buyback program in the short term. He stated that such a program can have a significant impact on the share price: "Half of the 100 million shares of ForFarmers are owned by the farmer. About 45 million shares are 'free float', or freely tradable. If you buy ten million of these pieces, the price can really only go one way." Although the buyback will only start tomorrow, the ForFarmers share immediately shot up 10% after the announcement this morning.
Steve Wissink
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