Pepco Buys 363,939 Shares in Two Days Under Tranche of Up to €50 Million
Key Facts
Pepco Group bought 363,939 of its own shares on 22 and 23 October at an average price of 48.01 zlotys per share, for a total value of 17,472,375.90 zlotys, the company said in a disclosure. The purchases mark the start of a first tranche of up to €50 million under a multi-year programme of up to €400 million launched on 22 October. Separately, International Airlines Group said on 19 October that it had bought 6,672,812 ordinary shares between 12 and 16 October. IAG's purchases are part of a €500 million programme announced on 2 October. IAG said the programme is intended to reduce capital, while Pepco has linked its programme to a broader framework for returning cash to shareholders.
In detail, Pepco bought 176,254 shares on 22 October at an average of 48.07 zlotys per share, followed by 187,685 shares on 23 October at an average of 47.95 zlotys. The value of transactions on the first day was 8,473,288.27 zlotys, compared with 8,999,087.63 zlotys on the second day. The two-day total puts purchases made so far in the context of a tranche capped at €50 million; it does not mean the full amount has been used. The company estimated that the tranche's maximum, calculated at the closing price on 21 October, was equivalent to 4,595,724 shares. The terms also stipulated that the purchase price per share must not exceed 110% of the market price specified in the announcement.
Pepco's first tranche is intended to reduce capital and is being executed through intermediary Erste Bank Polska, which makes purchase-price and timing decisions independently of the company. The programme may be suspended, amended or terminated, and the group intends to publish weekly reports in weeks when transactions take place. The tranche is due to end no later than 31 December 2026. The new programme follows Pepco's statement that its updated policy aims to return all prior-year adjusted free cash flow to shareholders through dividends and buybacks. The company said it completed €550 million in share buybacks in fiscal 2026 and returned a total of €603 million to shareholders.
In an update issued on 29 September, Pepco said constant-currency revenue growth in the fourth quarter through 20 September was 15.6%, while like-for-like sales excluding fast-moving consumer goods rose 9.5%. It estimated fiscal 2026 revenue at more than €4.5 billion, with constant-currency growth of about 8%. It also raised its forecast for growth in underlying profit after tax to more than 60%, compared with previous guidance of more than 50%. Pepco expected unlevered free cash flow to exceed €350 million, against previous guidance of about €300 million, with capital expenditure of about €150 million. The update places the buyback programme within a capital policy that links shareholder returns to cash flow after capital expenditure.
Under its framework, which it said would take effect from fiscal 2027, Pepco intends to return all excess adjusted free cash flow from the prior year, after strategic investment, through dividends and share buybacks. The framework includes gradually raising the dividend payout ratio to 40% of underlying net profit. The company had said its new buyback programme, of up to €400 million, could be carried out between fiscal 2027 and fiscal 2029. It also announced that preliminary results for fiscal 2026 would be released on 9 December 2026. IAG shares, which trade under the ticker ICAGY, closed at $10.64 on 23 October, according to data provided by EL7.
IAG's programme is being executed through purchases in the market and from Qatar Airways, which agreed to participate proportionally to maintain its 25.1434% voting-rights stake. IAG allocated €374 million for purchases from market participants and €126 million for purchases from Qatar Airways, within the programme's €500 million cap. The group said the purchased shares would be held as treasury shares pending cancellation. The two announcements therefore cover separate buyback operations, each with its own scope, execution mechanism and stated purpose. IAG said its purchases of 6,672,812 shares covered the period from 12 to 16 October, not more recent transactions on 26 October.