Green light а a share repurchase of $ 20 billion

The action Nestlй was one of the less good performance of blue chips of the swiss stock Exchange on Tuesday. (Photo: Keystone)

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On this topic

• 
  Scholarship: Nestlй is cup after the hustle and bustle of the day before

• Power supply: investors welcome the dйcision of Nestlй

• Power supply: Nestlй could sell activitйs in the USA

A fault?

The board of directors of Nestlй has approuvй Tuesday a share buyback program а height of 20 billion swiss francs. The gйant food waldensians took this dйcision then he is subjected to the pressure of the fund activist amйricain Third Point.

In the case of major acquisitions during this pйriode, the program will be adaptй in consйquence. In the context of low rates of?intйrкt and strong gйnйration of cash flow, redemptions d?actions offer a viable option for the crйation of value for shareholders, continuing the firm.

The volume of redemptions of shares monthly dйpendra conditions marchй. This йtant, it is likely to be more important in 2019 and 2020 to allow for the pursuit of opportunitйs acquisitions crйatrices of values, prйcise Nestlй.

On the basis of current projections, the company prйvoit a ratio of net debt to EBITDA of about 1.5 by 2020, according to the communiquй.

This is for the group of a new йtape to “the implementation of his module is full of crйation value”, recalls the text. The dйbut of the annйe, management undertook, with the board of directors, an analysis full of the capital structure of the company and its prioritйs. This review was а support and а amйliorer its capacitй а rйaliser module crйation value.

Bet on the santй

Nestlй will also continue а invest mainly in the areas а growth йlevйe such as the cafй, petcare, infant nutrition, and water embouteillйe, prйcise the multinational. Not to mention the products of santй destinйs to the general public.

The group munera as “an approach disciplinйe in matiure acquisitions”. At the end of June, it has taken a minority stake in the spйcialiste amйricain dishes prkts а consumption Freshly.

The ongoing discussions regarding the sale of activitйs of confectionery in the United States of the firm are йgalement in line with this new stratйgie. The gйant food waldensians had indiquй mid-June that the exploration of options stratйgiques for these activitйs should be finalisйe by а the end of the annйe.

Pressure from Third Point

On Monday, the fund amйricain Third Point, in the hands of the investor activist Daniel Loeb, took a stake of 1.3% in Nestlй, corresponding а were 3.28 billion swiss francs. It has, due to the dйpart, put multinationals under pressure to amйliore its margins, launching share buybacks and sйpare assets non-stratйgiques, а start by its share in The Orйal.

At the stock Exchange, the share of the group has terminй down 1.58% а 84,30 francs on Tuesday, in a SMI in the decline of 0.53%. The day before, she had gagnй of 4.3%.

(nxp/tty)

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