adidas AG to initiate share buyback program
Herzogenaurach, January 29, 2008 - adidas AG will launch a share buyback program of up to 5% of the Company’s stock (up to 10,182,248 shares). This implies an aggregate purchase price of up to € 420 million. adidas AG intends to cancel repurchased shares, thus reducing its stock capital. As a result, the Group’s equity ratio will decrease and earnings per share will increase. Further, shares may also be used to meet obligations towards Group employees arising from share option programs. The share buyback will be financed exclusively from the Group’s free cash flow.
A repurchase of up to 10% of the Company’s share capital on the stock exchange through November 9, 2008, was authorized by the Annual General Meeting on May 10, 2007. The purchase price per share may not exceed or fall below the average XETRA closing auction price on the Frankfurt Stock Exchange of the last three trading days prior to the relevant purchase by more than 5%.
Should the existing authorization to repurchase shares be replaced by a new authorization at the upcoming Annual General Meeting on May 8, 2008, the share buyback may be continued on the basis of the new authorization.
The buyback will be conducted in accordance with the Commission Regulation (EC) No. 2273/2003 of December 22, 2003.
adidas AG intends to start the program immediately.