Dec 12 (Reuters) - French private equity firm Wendel plans to return more than 1.6 billion euros ($1.9 billion) to shareholders by 2030, driven by expected cash inflows exceeding 7 billion euros, it
Wendel to Return €1.6 Billion to Shareholders by 2030
By Jakob Van Calster
Dec 12 (Reuters) - French private equity firm Wendel plans to return more than 1.6 billion euros ($1.9 billion) to shareholders by 2030, starting with share repurchases next year, it said on Friday ahead of its investor day.
The company will launch a programme in 2026 aiming to buy back 9% of its share capital, which translates to around 300 million euros based on current market prices. The rest of the planned returns will be paid out in dividends, it said.
Shares of Wendel rose 7% in early trading in Paris and could see their biggest one-day rise since early 2022 if the gains hold through the session.
The shareholder returns will be driven by expected cash inflows of more than 7 billion euros until 2030, the company said, pointing to steady fees in its asset management business and potential capital gains from selling companies in its portfolio.
Talking to reporters, CEO Laurent Mignon also teased the possibility of even higher shareholder returns, noting the expected 7-billion-euro inflow would leave 1.2 billion euros unallocated.
This money will allow Wendel to solidify its balance sheet, continue making investments, for example by acquiring new companies, or introduce further buybacks in later years, Mignon said on the press call.
"We believe investors are already eyeing the remaining EUR 1.2bn in cash which could represent an additional annual buyback of EUR 300m in 2027-2030," analysts from Degroof Petercam said in a note to clients.
($1 = 0.8521 euros)
(Reporting by Jakob Van Calster in Gdansk, editing by Milla Nissi-Prussak)
