Switzerland-based agribusiness company Bunge (NYSE:BG) Global SA, currently trading near its 52-week low at $85.50, has reported an amendment to its Articles of Association, reflecting a reduction in share capital following a repurchase of shares.
The adjustment was effective as of Friday, December 6, 2024, as detailed in a recent 8-K filing with the U.S. Securities and Exchange Commission. According to InvestingPro analysis, the stock appears undervalued at current levels.
The company's share capital decreased from $1,614,294.72 to $1,552,825.42, a reduction of $61,469.30. This change is a result of the cancellation of 6,146,930 registered shares, each with a nominal value of $0.01, which were bought back under Bunge Global's share repurchase program. InvestingPro data reveals that management has been aggressively buying back shares, demonstrating confidence in the company's value proposition.
In conjunction with this decrease in share capital, Bunge Global also made a corresponding amendment to its Swiss "capital band" provision, which is a regulatory requirement allowing for a certain fluctuation range in the share capital without needing to convene a general shareholders' meeting for each change.
The company, which is incorporated in Switzerland and listed on the New York Stock Exchange under the ticker NYSE:BG, specializes in the fats and oils industry within the manufacturing sector. The amended Articles of Association, which include the details of these changes, were attached to the filing as Exhibit 3.1.
This announcement follows the company's ongoing efforts to manage its capital structure effectively. Bunge Global's business address and principal executive offices are located in Geneva, Switzerland, with its corporate headquarters situated in Chesterfield, Missouri.
Investors and stakeholders can refer to the company's 8-K filing for complete details on the amendments. The information provided herein is based on the press release statement filed with the SEC.
In other recent news, Bunge Global SA has expanded its share repurchase program by an additional $500 million, bringing the total available for share repurchases to approximately $1.3 billion.
The expansion is part of the company's capital allocation strategy, which includes utilizing proceeds from the recent sale of its interest in a sugar and bioenergy joint venture. Bunge's third-quarter earnings per share (EPS) decreased to $2.29 from $2.99 in the same period last year, primarily due to costs associated with its pending merger with Viterra.
Bunge's net earnings per share also fell to $1.56 from $2.47. Despite these declines, Bunge maintains a strong liquidity position and anticipates an adjusted EPS of at least $9.25 for the full year. BMO Capital Markets has lowered its price target for Bunge to $110 from $120, citing uncertainties in the current environment. Similarly, CFRA has reduced its price target from $109.00 to $90.00, maintaining a Hold rating on the stock.
The Viterra merger, which is expected to dilute Bunge's EPS in the first year, is now anticipated to close by the end of the year or early 2025. This is a delay from the prior guidance. As part of its repurchase plan associated with the Viterra deal, Bunge has repurchased $200 million in shares year-to-date.
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