The board of directors of communication satellite operator Eutelsat has approved Thursday (September 21) the repurchase of some of its shares, exactly a week before the company was scheduled to merge with former competitor OneWeb on September 28.
According to Advanced Television, the company could spend up to €381,804 ($406,258.55) on 58,739 shares or less than 5% of its share capital.
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Why Did Eutelsat Bought Back Some of its Shares?
The purchase took advantage of the current ultra-low value of Eutelsat's share price, with each share valued at €5.53 each ($5.88) as of September 19. The highest value a Eutelsat share price obtained was €22 ($23.41) in October 2018.
The share buyback would be executed by BNP Paribas Exane, which would act as an intermediary on the multilateral trading facilities where Eutelsat shares are traded, as well as on the regulated market of Euronext Paris.
The company is also expected to release its Q1 2023-24 financial report on October 26.
Eutelsat's top shareholders, which collectively hold 49.4% of the company, have expressed their support for the merger as early as March. Meanwhile, OneWeb's shareholders previously approved the merger as Eutelsat already owned 23% of the firm prior to building up interest in merging.
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