Wens Foodstuff to buy back 800M-1.2B yuan of A shares

Wens Foodstuff to buy back 800M-1.2B yuan of A shares

Wens Foodstuff Group Announces Share Repurchase Program

Wens Foodstuff Group Co., Ltd. (SZSE: 300498) has announced a share repurchase program, allocating up to CNY 1.8 billion to buy back its A-shares. The initiative, valid for 12 months, aims to reinforce shareholder value and support employee equity incentives. The repurchase price is capped at CNY 27.12 per share, following an adjustment on June 6, 2023, after the 2022 profit distribution, down from an initial maximum of CNY 27.32 per share.

The shares acquired under the program will be designated for employee stock ownership plans (ESOPs) or equity incentive schemes, aligning with the company's long-term strategy to enhance corporate governance and motivate key personnel. The repurchase amount represents a significant portion of the company's capital allocation, reflecting confidence in its financial stability and operational resilience.

This move follows a separate announcement in December 2023, wherein Wens Foodstuff agreed to acquire a 91.4% stake in Juncheng Herui Environment Group, a pollution control firm linked to one of its directors, for CNY 1.61 billion. While distinct from the share buyback, the acquisition underscores the company's broader focus on integrating resources within the agricultural and environmental protection sectors.

The share repurchase program underscores Wens Foodstuff's commitment to optimizing capital structure while addressing shareholder interests. With a clear framework for execution and pricing, the initiative is positioned to bolster market confidence without compromising operational flexibility. Investors are advised to monitor subsequent updates on repurchase progress and related financial disclosures.

Marketscreener, June 2023: Marketscreener, June 2023
Marketscreener, June 2023: Marketscreener, June 2023 (duplicate source)
Yicai Global, December 2023: Yicai Global, December 2023

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