Bond.az reports that Evolution AB stock surged 12.30% to 745.2 SEK after the board announced a massive €2 billion share buyback program.
The buyback is authorized under a mandate from the 2026 Annual General Meeting, aimed at optimizing the capital structure and enhancing shareholder value.
Total allocation for the program is €2 billion, to be executed per EU Market Abuse Regulation.
Simultaneously, the board secured a €300 million revolving credit facility from J.P. Morgan SE and Citibank Europe plc to maintain financial flexibility.
Analysts note the buyback represents about 16.5% of Evolution's market cap of €12.1 billion, far exceeding expectations.
Buybacks start immediately. The announcement follows a series of shareholder-friendly signals, including no dividend for 2025 and recent short interest reduction.
Hedge fund Marshall Wace cut its short position to below 0.5%, removing downward pressure.
U.S. markets were neutral, making Evolution's surge company-driven.
The board's decision signals confidence that the stock is undervalued. Shares hit a session high of 746.4 SEK, well above the 52-week low of 515.4 SEK.
