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The world’s largest staffing firm Adecco (ADEN:VTX) will buy back up to €400 million of shares from mid-July, the firm announced this morning. The news has already impacted the stock positively with the company’s share price rising by +4.58% to CHF 39.01 in early trading today, giving the firm a market capitalisation of CHF 7.06 billion.
The Group said that “given Adecco’s solid financial position and strong cash flow generation, Adecco’s Board of Directors has decided to launch a share buyback programme of up to EUR 400 million.” The firm is to fund the share buyback in the debt capital market and is planning to issue bonds in the near future, subject to market conditions.
In the message sent out to shareholders, the firm also said that the programme “underlines Adecco’s commitment to manage its capital structure for the benefit of its stakeholders, without compromising the Group’s growth opportunities and financial flexibility.”
The share buyback will be executed on a second trading line on the SIX Swiss Exchange.
Last month, the firm reported stronger than expected first-quarter results amounting to €5.03 billion although with slowing activity in its European market impacted in particular by France where revenue dropped by -10%.