Moët Hennessy Louis Vuitton has announced a share buyback program totalling nearly $320 million.
The buy back program will run from Nov. 17 through Dec. 30 and will not exceed $318 per share as set in the Annual General Meeting held in April 2016, the company said in a statement to shareholders.
The breakdown, according to Luxury Daily, is that LVMH will purchase shares from current shareholders at market price on a daily basis until the 300 million euros, or $318 million, is reached. Once the shares are acquired, the intention is to cancel them.
The move is likely an effort to boost earnings, reduce the overall cost of capital, take advantage of undervaluation and perhaps includes ownership consolidation.