Share buyback
An operation through which a company repurchases its own shares on the market or from shareholders. It reduces the number of shares in circulation, mechanically increasing earnings per share and potentially supporting the share price.
In practice
A share buyback is a shareholder return mechanism alternative to the dividend. In France, French SAS and SARL companies may buy back their own shares under conditions governed by the company’s articles and statute (Article L227-6 of the Commercial Code). For an unlisted group, a holding-level buyback of shares is a way to organise the exit of a minority shareholder without finding an external buyer, provided it respects equal-treatment rules among shareholders.