CaixaBank has completed the program to buy back 6.93% of its capital that began in May after an investment of 1,800 million euros, as announced this Wednesday in a note to the National Securities Market Commission (CNMV).
"The purpose of the program was to reduce the share capital of CaixaBank by amortizing the own shares acquired within the framework of the program in a capital reduction," the communication explained. Thus, the procedures for the reduction are now beginning, which will be reported to the market.
When a listed company buys back its own shares and removes them from circulation, the remaining shareholders have a larger portion of the company. In theory, measures of this type encourage shares to rise in price as there are fewer in circulation. Other large banks are also carrying out these types of measures.
This redemption of shares could also mean that the main shareholders of the bank, that is, the La Caixa Banking Foundation, through Criteria, with 30.012% of the capital, and the State, through the FROB, with 16.117%, raise their weight in the shareholding, with which both would receive more dividends for their participation in the entity.
The repurchase was included in the remuneration provided for in the 2022-2024 Strategic Plan. Specifically, CaixaBank plans to generate around 9,000 million capital, which it plans to distribute to shareholders until 2024 through cash dividends and buyback programs.
With the volume of own shares purchased, Criteria could exceed 32% of the shareholding and the State could exceed 17%, according to Efe. Criteria committed to the ECB in May 2016 to limit voting and economic rights in CaixaBank "to a percentage of 40% or less." This was one of the conditions for giving the green light to the deconsolidation of Criteria in CaixaBank. However, that same protocol also establishes that Criteria may not participate in the voting of independent directors if it exceeds 31% of the capital.
