French luxury goods giant LVMH announced that it has appointed an investment services provider to repurchase its own shares for up to €1.5 billion starting from March 1, 2023, until July 20, 2023, or earlier.
The repurchased shares will be canceled. This repurchasing and cancellation of shares will increase the percentage of shares held by existing shareholders.
Quincy Krosby of US asset manager LPL Financial said in an interview with AFP that share buybacks are “Extremely popular with shareholders. Typically, the immediate reaction is that the share price goes up.”