GBL Boosts Shareholder Returns with EUR 130 Million Buyback Program

GBL Boosts Shareholder Returns with EUR 130 Million Buyback Program

(IN BRIEF) Groupe Bruxelles Lambert (GBL) announces an enhanced shareholder return plan through an accelerated share buyback program. Having executed 26% of its initial EUR 500 million share buyback, GBL will reinstate the program with an additional EUR 130 million, reflecting the Board of Directors’ belief that the current share price undervalues the company. The buyback aims to capitalize on the share price’s discount relative to net asset value per share, with the program expected to be completed by December 31, 2023. An Extraordinary General Meeting will propose canceling the acquired treasury shares.

(PRESS RELEASE) BRUSSELS, 1-Aug-2023 — /EuropaWire/ — Following the execution of 26% of its current EUR 500 million share buyback envelope1, Groupe Bruxelles Lambert (“GBL” or the “Company”) is re-increasing its share buyback program (the “Program”) by EUR 130 million back to this initial amount.

The increased resources allocated to the Program reflect the view of GBL’s Board of Directors that the Company’s current share price does not accurately reflect its intrinsic value.

Today’s announcement therefore relates to a further envelope of EUR 130 million, the overall EUR 500 million of the reinstated Program corresponding to approximately 4.6% of GBL’s outstanding shares2.

The Program is expected to be completed before December 31, 2023, subject to market conditions, and will be executed by an independent intermediary with a discretionary mandate enabling purchases in both open and closed periods.

As previously done, GBL will convene an Extraordinary General Meeting alongside its Ordinary General Meeting on May 2, 2024 to propose a resolution to cancel the treasury shares3 acquired by GBL pursuant to the Program.

On-the-market share repurchases under the Program will take place pursuant to the safe harbour regime provided for in Regulation (EU) No. 596/2014 of 16 April 2014 on market abuse and Delegated Regulation (EU) No. 2016/1052 of 8 March 2016 with regard to regulatory technical standards for the terms of buyback programs and stabilization measures.

For Ian Gallienne, CEO of GBL, “The decision to increase resources for our share buyback program underscores our confidence in the rerating potential of GBL’s share price. Our intention to accelerate the buybacks and subsequently cancel the treasury shares aims to capitalize on the current discount of our share price relative to our net asset value per share and is aligned with our ongoing focus on shareholder returns.”

About Groupe Bruxelles Lambert
Groupe Bruxelles Lambert (“GBL”) is an established investment holding company, with over sixty years of stock exchange listing and a net asset value of EUR 17.5 billion at the end of June 2023. As a leading and active investor in Europe, GBL focuses on long-term value creation with the support of a stable family shareholder base. As a responsible company and investor, GBL perceives ESG factors as being inextricably linked to value creation.

GBL aims to grow its diversified high-quality portfolio of listed, private and alternative investments.

GBL is focused on delivering meaningful growth by providing attractive returns to its shareholders through a combination of growth in its net asset value, a sustainable dividend and share buybacks.

GBL is listed on Euronext Brussels (Ticker: GBLB BB; ISIN code: BE0003797140) and is included in the BEL20 index.

Media Contact:

Xavier Likin
Chief Financial Officer
Tel: +32 2 289 17 72
xlikin@gbl.be

Alison Donohoe
Head of Investor Relations
Tel: +32 2 289 17 64
adonohoe@gbl.be

SOURCE: GBL