Societe Generale's Share Buyback Program: A Strategic Move for Shareholder Value

Societe Generale, a leading European financial services group, has recently announced an ordinary share buyback program for EUR 872 million, aiming to repurchase and cancel shares to enhance shareholder value. The program, which began on 10 February 2025, is expected to be completed by the end of the year, representing approximately 0.9% of the company's share capital. This strategic move aligns with Societe Generale's long-term investment strategy and risk management objectives, as it allows the company to take advantage of undervalued share prices and return capital to shareholders.



The share buyback program is being carried out in compliance with the conditions set forth by the General Meeting of 22 May 2024 and in accordance with the Market Abuse Regulation. Societe Generale has received all necessary authorizations from supervisory authorities and has temporarily suspended its liquidity contract with Rothschild throughout the buyback period. The company aims to complete 31% of the share buyback program by the end of February 2025, representing 0.9% of its share capital.

Societe Generale's decision to initiate this share buyback program is driven by several key factors, including capital allocation and return to shareholders, market conditions and undervaluation, shareholder value creation, and the company's strong financial performance and cash position. By repurchasing and canceling shares, Societe Generale can reduce the number of outstanding shares, which can lead to an increase in earnings per share (EPS) and potentially boost the share price in the long term. Additionally, the share buyback program allows the company to take advantage of undervalued share prices and return capital to shareholders in a tax-efficient manner.



In conclusion, Societe Generale's share buyback program is a strategic move that aligns with the company's long-term investment strategy and risk management objectives. By repurchasing and canceling shares, Societe Generale can enhance shareholder value, take advantage of undervalued share prices, and return capital to shareholders in a tax-efficient manner. As the program progresses, investors should closely monitor the company's share price and financial performance to assess the impact of the buyback on shareholder value.