(Boursier.com) — The Board of Directors of Thales has decided to propose to the shareholders, who will be convened to the General Meeting on May 11, the distribution of a dividend of 2.56 euros per share (1.76 euros per share in 2020). This level corresponds to a payout rate of 40% of adjusted net income, Group share, per share.
If approved, this dividend will be detached on May 17 and paid on May 19. The payment of this dividend will be made entirely in cash and will amount to €1.96 per share, taking into account the interim payment of €0.60 per share already paid in December 2021.
Redemption of shares
Considering the prospects for growth and cash generation, as well as the Group’s rapid debt reduction, the Board of Directors has also decided to implement a share buyback program relating to a maximum of 3.5% of the capital, i.e. approximately 7.5 million shares.
This program will start on April 1, 2022 and end no later than March 31, 2024.
The shares acquired under this program will be cancelled. To this end, Thales will enter into a share purchase agreement with an investment services provider. The Group may at any time suspend or interrupt the implementation of this program, in particular depending on market circumstances.
In this context, Dassault Aviation has informed Thales of its intention to remain below the threshold of 30% of the voting rights and that it will therefore carry out the bearer conversions necessary for this purpose.
“Thales ended 2021 with an excellent 4th quarter in terms of order intake and operational free cash flow. The Group thus achieved the best year in its history from a commercial point of view. These successes with our customers, combined with the mobilization remarkable performance of our teams, are reflected in cash generation significantly in excess of €2 billion. Considering this performance in 2021 and the outlook for 2022 and 2023, we are revising our cash generation target sharply upwards: the Group should thus generate nearly 5.5 billion euros in free operating cash flow over the 2021-2023 period,” said Patrice Caine, Chairman and CEO of Thales, this morning.