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05-JULY-2021

IBEX 35 companies increase treasury shares by 38.7% in 2020

  • The amortisation of treasury shares fell by 27.2% , to 4 billion euros
  • ACS, ArcelorMittal and Telefónica are the  index companies holding most treasury shares

IBEX 35© companies increased their treasury shares by 38.7% last year, according to a report by BME's Research Department, which can be accessed here (in Spanish). At the end of 2020, the total value of treasury shares held by companies in the index was 3.3 billion euros, which represents 0.63% of the IBEX 35©’s total capitalisation.

The increase in treasury shares last year was largely due to the 27.2% decrease in the amount of own shares amortised: 4 billion, compared with 5.7 billion in 2019. Among other applications, companies use their treasury stock for shareholder remuneration purposes which fell across the board last year due to the Covid-19 crisis and the prudential attitude of companies.

Last year, the eight IBEX 35© companies that amortised treasury shares were ACS, Iberdrola, Pharmamar, Naturgy, Meliá Hotels, Repsol, Cie Automotive and Ferrovial. Up to June 2021, five companies reduced capital by amortising own shares, for a total 883.1 million.

At year end-2020, 16 companies listed on the IBEX 35© increased their treasury shares, while 13 decreased it and 6 left it unchanged. Ten companies in the index held more than 1% of their capital in treasury stock. ACS was the largest, with 7.49%, followed by ArcelorMittal, with 2% and Telefónica, with 1.84%. On the other hand, three companies (Solaria, Aena and Cie Automotive) ended the year holding no treasury stock.

Among other issues, the Economic Research Department's report also reviews the legislation governing treasury shares, which establishes a maximum proportion of 10% of the capital.