(Reuters) -Italy's biggest utility Enel's shareholders on Thursday approved a buyback plan and the possibility to cancel acquired shares without reducing its capital, opening the way for Italy's
Italy's Enel shareholders approve up to 3.5 billion euro in investor rewards
(Reuters) -Italy's biggest utility Enel's shareholders on Thursday approved a buyback plan and the possibility to cancel acquired shares without reducing its capital, opening the way for Italy's biggest utility to increase its investor reward.
Shareholders granted the board the authorisation to acquire up to 500 million shares and spend up to 3.5 billion euros ($3.95 billion) in the buyback.
It now depends on Enel's board to decide when to launch the purchases and how much money to devote to the first tranche of the programme.
Some financial analysts have indicated the state-controlled utility could spend around 1 billion euros for the buyback in the first tranche, in a move aimed at increasing the value of the stock.
European oil and gas groups — including Shell, TotalEnergies and Italian major Eni — introduced share buyback programmes years ago in an effort to attract investors.
The group's Spanish unit, Endesa, has recently announced a total share buyback programme worth up to 2 billion euros by the end of 2027, of which a 500 million euro tranche was launched at the end of April.
($1 = 0.8871 euros)
(Reporting by Francesca Landini and Devika Nair in Bengaluru; Editing by Alan Barona)
