Adidas has announced the approval of a multi-year share buyback program worth up to $3.7 billion that will run until 2021.
The move means the German sportswear brand will buy up to 9 percent of its share capital.
“The sizable multi-year buyback program announced today shows the confidence in our strategy ‘Creating the New’,” said Harm Ohlmeyer, CFO of adidas.
The vast majority of the share buyback program will be financed through the company’s net cash position as well as the expected strong operating cash flow generation in the years ahead. At the same time, adidas AG intends to make use of available attractive conditions for debt financing on the capital markets in order to finance the share buyback program, the company said in a statement.
“We will continue to relentlessly drive operating cash flow, while at the same time investing back into our company to provide for future growth. The buyback complements our stated dividend policy, underscoring our commitment to continuous shareholder return.”