Sacyr has once again used a financial formula that it had previously employed to take exposure on its own shares.
The company communicated this Tuesday to the CNMV the hiring of a financial instrument on ten million shares. The supervisor registered the communication at 08:45 hours on August 25.
The contract has an initial reference price of 4.266 euros per share, which places its initial value at approximately 42.7 million euros.
What is a forward contract
A forward is an agreement between two parties to execute a transaction on an asset at a future date under agreed conditions.
In this case, the asset is shares of Sacyr.
The construction company has contracted the instrument with a credit entity and has set a maturity of one year.
The price of 4.266 euros acts as an initial reference, but the final amount may vary depending on the final execution price.
Ten million shares
The volume of the contract is equivalent to ten million shares of Sacyr.
That does not mean that the company has automatically bought ten million shares on the stock market this Tuesday nor that it has already disbursed the 42.7 million.
The forward establishes the conditions for a future settlement.
In previous operations of this type, Sacyr has contemplated both the physical delivery of shares and the settlement by differences, depending on the contractual conditions.
Sacyr has already used this formula
It is not an unprecedented structure for the company.
Sacyr has signed several forward contracts in recent years on packages of ten million of its own shares.
In previous operations, it communicated initial reference prices of 3.044 euros, 3.404 euros, and 2.936 euros per share, among others.
The new reference of 4.266 euros is above those operations.
What it means for the shareholder
The contract reflects that Sacyr is once again using instruments linked to its own quotation, but it does not equate to a conventional share buyback executed immediately in the market.
The economic effect will depend on how the forward is settled within a year and on the price evolution until then.
The company must communicate any relevant subsequent operation in accordance with stock market obligations.