Jan 10 2006
BASF bought back shares for €1,435 million in 2005. A total of 26.06 million shares were bought back last year at an average price of €55.05. This corresponds to 4.82 percent of the company’s share capital.
€274 million was related to BASF’s 2004 buyback program. Under the €1.5 billion share buyback program announced in April 2005, €1,161 million was spent up to December 31, 2005. It is planned to complete the ongoing program in the first quarter of 2006.
In the third and fourth quarter of 2005, BASF was temporarily unable to buy back shares: Buybacks were prohibited under the terms of the German Securities Trading Act (WpHG) due to non-public information related to the creation of a contractual trust arrangement (CTA), the interest in acquiring Degussa’s construction chemicals business, and the planned cash offer to acquire Engelhard Corporation.
In 2005, 26.18 million shares were canceled (thereof 800,000 shares that were bought back in 2004). As a result, BASF’s share capital was reduced by approximately €67 million. The remaining 680,000 shares that were also bought with the aim of cancellation will be canceled in 2006.
BASF Aktiengesellschaft had approximately 515 million shares outstanding at the end of 2005. The weighted average used for calculating earnings per share for 2005 is approximately 525.12 million shares.
The aim of buying back shares is to reduce the equity ratio and increase earnings per share.
http://www.corporate.basf.com