Melexis: A Strategic Share Buyback Program

Melexis NV, a leading global provider of semiconductor solutions, has announced the launch of a share buyback program, aiming to repurchase up to 850,000 shares for a maximum of EUR 50 million. This strategic move, authorized by shareholders in November 2023, is set to run from December 11, 2024, to December 10, 2025. The program is designed to enhance shareholder value and align with Melexis' long-term financial strategy.

The share buyback program is a testament to Melexis' confidence in its financial health and future prospects. By reducing the number of outstanding shares, the company aims to increase earnings per share (EPS) for remaining shareholders, thereby enhancing shareholder value. The program will be executed adhering to best practices and relevant buyback rules and regulations, with an independent financial intermediary conducting the purchases on the regulated market Euronext Brussels.

Melexis' share buyback program follows a series of previous programs, with the most recent authorizations granted in 2009 and 2012. In 2009, the board was authorized to acquire up to 20% of its outstanding shares at a maximum price of EUR 17.00. In 2012, the company decided to cancel 2.841.860 treasury shares, bringing the total outstanding shares to 40.400.000 shares. The current program represents a significant reduction in the number of shares authorized for buyback, indicating a shift in Melexis' capital allocation strategy.

The maximum price per share in the current program is set at approximately EUR 58.82, which is significantly higher than the maximum prices in previous programs. This increase reflects the higher valuation of Melexis' shares in the current program and the company's confidence in its financial prospects.



The impact of Melexis' share buyback program on its outstanding shares and market capitalization is expected to be positive. The repurchase of up to 850,000 shares, representing approximately 2.1% of Melexis' outstanding shares, will reduce the number of shares available for trading. This reduction could potentially drive up the stock price, positively impacting Melexis' market capitalization. Assuming a constant net income, a 2.1% reduction in outstanding shares could lead to a 2.1% increase in EPS.

Melexis' share buyback program is a strategic move that aligns with the company's long-term financial strategy and shareholder value creation. By reducing the number of outstanding shares and enhancing EPS, the program signals the company's confidence in its financial health and future prospects. Investors should closely monitor the progress of the program and its impact on Melexis' financial performance.