Italian insurer Generali is set to launch a share buyback programme valued at up to €350m ($364.6m) to facilitate its Group Long Term Incentive Plan for 2024–26 and other ongoing remuneration schemes.
The plan was approved by shareholders in April 2024 and is set to commence on 31 January 2025 and conclude by April 2025.
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BNP Paribas has been contracted to manage the buyback, which will operate independently according to pre-established criteria.
The minimum and maximum purchase prices for the shares have been set with respect to the implicit par value and a 5% cap above the reference price the day before each transaction, respectively.
The authorisation for the buyback has an 18-month term, and there is no restriction on the time frame for disposing of the repurchased shares.
All buyback transactions will be executed on the Euronext Milan market. Currently, Generali and its subsidiaries possess 47,994,953 treasury shares, amounting to 3.06% of the share capital.
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By GlobalDataThis development comes after the potential reappointment of CEO Philippe Donnet, whose term is due for renewal in the spring, Reuters reported.
Generali has decided not to propose any board nominees in adherence to new government regulations, with Donnet indicating his willingness to serve another term.
However, the plan did not receive unanimous support as the three board representatives associated with Caltagirone abstained from voting.
The situation is further complicated by Mediobanca, a significant shareholder in Generali, becoming a takeover target for Monte dei Paschi.
Recently, Generali entered a non-binding memorandum of understanding with French banking group BPCE to merge their asset management operations.
Looking ahead, Generali’s board has outlined growth targets for the 2025–27 period, aiming for an 8–10% EPS (earnings per share) compound annual growth rate and more than €11bn in cumulative net cash flow.
