Tenaris Completes First Phase of Share Buyback Program
Tenaris S.A., a global manufacturer of steel pipes, has successfully completed the first segment of its share buyback program. The company announced that it has acquired 17,779,302 ordinary shares at a total cost of approximately €276.2 million, or $300 million. This initial phase of the buyback program began on November 6, 2023, and concluded on January 12, 2024.
Acquisition of 17.8 Million Shares Concludes Successfully
During the final week of purchases, Tenaris acquired the shares from multiple trading venues, including MTA, CEUX, TQEX, and AQXE. The shares were acquired at weighted average prices ranging from €14.85 to €15.35, with the exchange rate for purchases in U.S. dollars averaging around 1.0979. This successful acquisition brings Tenaris’s total issued share capital in treasury to 1.51%.
Tenaris to Cancel Shares Bought in Treasury
Tenaris has announced its intention to cancel all shares bought under the share buyback program. This practice is commonly undertaken to reduce the number of shares in circulation and potentially increase the value of the remaining shares. By canceling the shares in treasury, Tenaris aims to optimize its share capital structure and enhance shareholder value.
Second Tranche of Buyback Program to Begin in February
Following the conclusion of the first phase of the share buyback program, Tenaris has stated that the second tranche will commence no earlier than February 26, 2024. This start date is set in line with the end of the company’s blackout period. The second phase of the program will involve further repurchasing of shares, as part of Tenaris’s ongoing capital allocation strategy.
Tenaris’s Capital Allocation Strategy Drives Buyback Success
The completion of this phase of the share buyback program reflects Tenaris’s efforts to effectively manage its financial resources. The company’s capital allocation strategy drives the decision to repurchase shares, aiming to optimize its capital structure and create value for shareholders. Tenaris acknowledges the potential risks associated with fluctuations in oil and gas prices, which may impact the investment programs of companies in these sectors.
Tenaris is a recognized leader in the supply of steel tubes and related services to the energy industry and other industrial sectors globally. The successful completion of the first phase of the share buyback program highlights Tenaris’s commitment to maximizing shareholder value and reinforcing its position in the market.
Analyst comment
Positive news. Tenaris has successfully completed the first phase of its share buyback program, acquiring 17.8 million shares at a total cost of €276.2 million. The company plans to cancel these shares to optimize its capital structure. The second phase of the buyback program will begin in February, demonstrating Tenaris’s commitment to enhancing shareholder value. As a result, the market may expect a potential increase in the value of the remaining shares.
