UniCredit is expected to begin the first tranche of a share repurchase programme on Monday after receiving regulatory approval last week.
The financial group hired BNP Paribas to buy back up to EUR 2.34 billion of shares, or 12% of UniCredit’s capital, while repurchases are expected to be completed by the end of June.
Last week, the European Central Bank gave UniCredit a green light to repurchase EUR 3.34 billion of its own shares after another EUR 2.58 billion buyback in 2022.
UniCredit has been trading at a discount to its book value and the group’s Chief Executive Officer Andrea Orcel has not once stressed on an objective to boost its share price.
The gap between the current share price and the book value will narrow on a per share basis once the repurchased shares are cancelled.
The shares of UniCredit SpA (CRDI) were last gaining 3.12% (EUR 0.5440) to trade at EUR 17.9540 in Milan on Monday, while offsetting a loss from the prior session.
The financial group’s total market cap now stands at EUR 33.788 billion.
The shares of UniCredit SpA (CRDI) have risen 35.28% so far this year, following a 2.01% loss in 2022.
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