CD Projekt has announced a new program, under which the company will be free to buy back its own shares. On top of that, a portion of last year’s net profit will be used to pay dividends to shareholders.

CD Projekt will buy back its own shares worth up to $119 million

On June 6, CD Project held an annual general meeting where shareholders authorized the management board to buy back shares in the company worth up to PLN 500 million ($119 million). This was reported by Reuters.

The new program is twice the size of the previous one authorized in November 2016, when CD Projekt decided to buy back PLN 250 million of its own shares.

According to a document containing draft resolutions of the general meeting, the goal of the buyback is share redemption and, as a result, the reduction in CD Projekt’s share capital. The management board is also free to discontinute the process at any time or cancel it in whole or in part.

During the general meeting, CD Projekt also announced that PLN 99.9 million ($23.7 million) of its 2022 net profit will be divided among shareholders as a dividend of PLN 1 per share. The remaining part of the profit, PLN 241.1 million ($57.3 million), will be allocated to the company’s reserve capital.

So CD Projekt is authorized to buy back its own shares in exchange for remuneration from its reserve capital. The company can also carry out the new buyback program in the most flexible way — both in the transactions on the Warsaw Stock Exchange and in the form of a public tender offer addressed to all shareholders.

The last time the Polish developer conducted a buyback under the old program was in October 2022, when it purchased around $20 million worth of its own shares. This move had a positive impact on its stock.

Got a story you'd like to share? Reach us at [email protected]