Ströer decides to extend its capital allocation strategy and approves initial share buyback of up to EUR 50m

Today, Ströer Management SE, the general partner of Ströer SE & Co. KGaA, decided to add a share buyback element to the capital allocation strategy of Ströer SE & Co. KGaA and to carry out an initial share buyback program with a total repurchase volume of up to EUR 50m. The volume of EUR 50m represents the likely maximum number of shares that can be acquired over the coming six months within the regulatory limits.  The program is scheduled to commence on October 3, 2022.

Business performance in the third quarter and the order book for the year-end business are fully in line with the Group’s forecast and it therefore continues to anticipate a robust business performance for 2022 as a whole in line with the expectations of the capital markets.

The Ströer Group expects a very solid liquidity position for the remainder of the year and predicts that leverage will remain significantly below the target level of approximately 2.5. It intends to maintain an unchanged dividend policy. The current dividend yield is already over 6% and the share buyback will have a positive impact on earnings per share.

Christian Schmalzl, Co-CEO of Ströer, explains: “The share buyback program we have adopted creates value for our shareholders and underscores our confidence in the strength and resilience of our OOH+ strategy in these challenging times. We firmly believe that we will continue to achieve profitable growth in line with our medium-term planning and, in particular, benefit disproportionately from the structural changes that are taking place in the German advertising market. Although we are still at an early stage in the process of digitalizing our portfolio of advertising spaces, we have already secured all of the key locations offering digitalization potential and expect to see continued rapid business growth. Against this backdrop, and in view of the significant value-adding potential in our non-core businesses such as Asam Beauty and Statista, we have now added a share buyback element to our capital allocation strategy.”

The share buyback program serves any permissible purpose and will be carried out through trading on the Frankfurt Stock Exchange’s Xetra marketplace in accordance with the ‘safe harbor’ rules stipulated in Article 5 of the EU Market Abuse Regulation. Based on current trading volumes, this initial buyback program is expected to run for around six months.

The share buyback program will be conducted on the basis of the authorization granted by the annual shareholder meeting of Ströer SE & Co. KGaA on November 4, 2020, which permits the general partner of Ströer SE & Co. KGaA to repurchase a total volume of company shares equivalent to no more than 10% of the share capital of Ströer SE & Co. KGaA by November 3, 2025.

Disclaimer

This press release contains "forward-looking statements" regarding Ströer SE & Co. KGaA ("Ströer") or the Ströer Group, including assessments, estimates and forecasts regarding the financial position, business strategy, plans and objectives of management and the future business activities of Ströer or the Ströer Group. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors which may cause the results of operations, profitability, performance or achievements of Ströer or the Ströer Group to be materially different from any future results of operations, profitability, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements are made as of the date of this press release and are based on numerous assumptions that may also prove to be incorrect. Ströer makes no representation and assumes no liability with respect to the fair presentation, completeness, correctness, adequacy or accuracy of the information and assessments contained herein. The information contained in this press release is subject to change without notice. It may be incomplete or abbreviated and may not contain all material information relating to Ströer or the Ströer Group. Ströer does not undertake any obligation to publicly update or revise any forward-looking statements or other information contained herein, neither as a result of new information, future events nor otherwise.