Capgemini announces the launch of a fifth employee share ownership plan (ESOP) and the implementation of a dedicated share buyback envelope designed to neutralize its dilution for the existing shareholders.
- Capital increase up to 2,500,000 shares reserved for Group’s employees
- Share buyback to neutralize the related dilution
The new employee share ownership plan is offered to approximately 98% of the employees and is part of the Group’s policy to associate all employees with its development and performance. The employee shareholding resulting from previous ESOPs represents around 4.5% of Capgemini SE’s share capital. This fifth ESOP will be implemented through a capital increase reserved for the Capgemini employees for a maximum of 2,500,000 shares (i.e. about 1.5% of outstanding shares), with settlement-delivery no later than December 18, 2018. The main terms and conditions of this employee share ownership plan are detailed in an appendix to this press release.
As in 2017, the Board of Directors of Capgemini SE at its meeting of July 26, 2018 decided to authorize a dedicated share buyback envelope with the objective of cancellation in order to neutralize the dilutive effect of this capital increase. Consequently, Capgemini SE entered today into a share repurchase agreement with an investment service provider which is also the financial institution structuring the ESOP. Under this contract Capgemini has agreed to repurchase up to 2,500,000 shares for a maximum of €275,625,000 in view of their cancellation. The main terms and conditions of the share repurchase agreement are detailed in an appendix to this press release.
The terms of these transactions are in accordance with the authorizations granted by the Shareholders’ Meeting of May 23, 2018.