In a press release, the network operator said that it had bought 194,737,950 Snam Rete Gas ordinary shares, corresponding to 9.96% of the company’s share capital, at an average purchase price of E4.06, for a total amount of E791 million.
Snam Rete Gas commented that the buy back program created value for the company’s shareholders through the optimization of the financial structure, with positive effects on Snam Rete Gas’ cost of capital.
As of May 2, 2007 Snam Rete Gas holds 195,468,950 shares, corresponding to 9.99% of the company’s share capital. The company said that 9,731,000 of these shares have been reserved for incentive plans for managers that have direct responsibility for results, in strategic and economic terms.
Snam Rete Gas’ shareholders’ meeting on November 10, 2005, authorized the board of directors to buy up to 194,737,950 Snam Rete Gas shares on the Italian Stock Exchange, within 18 months of the meeting.
The board was required to buy the shares at a face value of E1 each, at a price no less than the face value and no greater than 5% above the reference price recorded on the day preceding each purchase, for up to a total amount of E800 million.
