Itau Unibanco Holding SA (ADR) ADR (NYSE:ITUB) Announces Outcome From Board Meeting

Itau Unibanco Holding SA (ADR) ADR (NYSE:ITUB) apprised its shareholders that the Board meeting on December 15, 2017, decided on several matters. The meeting resolved to cancel around 31.79 million common shares bought by way of an auction earlier in December as soon as the firm gets the ownership, without the decline of the capital sum. The above mentioned equities were bought by the firm by way of the buyback plan authorized by Board of Directors in August 2017.

The details

As an outcome of this cancellation, the sum amounting to around R$97.14 billion now comprises nearly 6.55 billion book-entry shares having no par value, around 3.31 billion of which are common shares while nearly 3.23 billion are preferred shares. The resulting modifications in the Bylaws will be taken upon in the subsequent General Stockholders’ Meeting. Itau Board resolved to terminate early the buyback plan of its own stock permitted at the Board of Directors’ meeting held on August 31, 2017.

The company permitted a fresh stock buyback plan, which shall become effective from December 20, 2017, allowing the acquisition of up to nearly 28.616 million of its own common shares and 50 million of its preferred shares, without any decline of the capital sum, to be kept as treasury stock, replaced or cancelled in the market.

Itau reported that the potential objectives of the stock acquisition procedure are to maximize the capital allocation by way of the proper investment of the resources accessible; to offer for the shares delivery to management members and employees of the firm and its subsidiary firms in the scope of the payment models and long-term incentive programs; and/or to use the shares bought should there exist business prospects in the imminent period.

In the last trading session, the stock price of Itau declined 0.62% to close the day at $12.84.

Cook Laurie

Cook Laurie

Laurie, a long-time member of the US Markets Daily general assignment reporter who has covered a variety of subjects from breaking news to investigative features, from stock markets to politics, and from neighborhood small business to global warming.