EQS-Adhoc: Westwing Group SE: Resolution on Public Share Buyback Offer
Introduction
Westwing Group SE, a leading European online retailer for home & living, announced a resolution on a public share buyback offer. This move is a strategic decision aimed at enhancing shareholder value and optimizing the company's capital structure.
Key Details of the Share Buyback Offer
Offer Period and Volume
The public share buyback offer will commence on March 14, 2023, and conclude on May 2, 2023. During this period, Westwing Group SE intends to repurchase up to 10% of its outstanding share capital, approximately 4.4 million shares.
Purchase Price
The purchase price for each share will be determined through an auction process conducted by a financial advisor. The final price will be announced on the day of the auction, which is expected to take place on March 13, 2023.
Tender Process
Shareholders who wish to participate in the offer can submit their tenders through the designated tender agent, Baader Bank AG. Shareholders may tender all or a portion of their shares, subject to a minimum tender size of 100 shares.
Rationale for the Share Buyback Offer
Westwing Group SE's decision to launch a share buyback offer is based on several strategic considerations:
Enhancement of Shareholder Value
The buyback program aims to enhance shareholder value by reducing the number of outstanding shares and increasing the earnings per share. This can potentially lead to an increase in the share price.
Capital Structure Optimization
The share buyback will allow Westwing Group SE to optimize its capital structure by reducing the number of shares in circulation. This can improve the company's financial flexibility and reduce financing costs.
Market Signal
The share buyback offer sends a positive signal to the market, indicating the company's confidence in its future prospects and its commitment to returning value to shareholders.
Benefits of Participating in the Share Buyback Offer
Shareholders who participate in the share buyback offer can benefit from several advantages:
Potential for Premium Price
The purchase price for the shares will be determined through an auction process, which may result in a premium price above the current market value.
Liquidity
The share buyback offer provides shareholders with an opportunity to sell their shares at a guaranteed price, increasing their liquidity.
Simplification of Shareholding
By tendering their shares, shareholders can simplify their shareholding structure and reduce administrative costs associated with holding multiple shareholdings.
Conclusion
Westwing Group SE's public share buyback offer represents a strategic initiative aimed at enhancing shareholder value, optimizing the company's capital structure, and sending a positive market signal. Shareholders who participate in the offer can benefit from a potential premium price, increased liquidity, and simplified shareholding. The offer period will commence on March 14, 2023, and shareholders are encouraged to carefully consider their participation.
