Investing.com -- Viscofan SA stock gained 2.7% after the company announced that an Illinois Environmental Protection Agency (IEPA) review of its Danville plant concluded with "No Violation Identified," contradicting allegations made by Hunterbrook about health risks associated with the facility’s operations.
The company reported that according to the IEPA, the plant’s RSEI Hazard Score is 0 for carcinogenic substances and only moderate for non-carcinogenic substances. Viscofan characterized Hunterbrook’s previous claims as "particularly misleading and lacking any scientific or medical evidence."
In addition to addressing the environmental concerns, Viscofan announced its first share buyback program in recent history, allocating €30 million to repurchase approximately 1% of its outstanding shares.
Kepler analysts commented on the buyback announcement: "we view positively as a sign of management confidence. While the size is indeed rather limited, we view it positively, as the modest scale likely reflects the extraordinary dividend of EUR1.0 per share being paid this year, and we believe there could be scope for a larger programme next year should there be no extraordinary dividend and the share price remain constrained."
The positive IEPA findings and the new share repurchase program appear to have boosted investor confidence in the Spanish casing manufacturer, contributing to today’s stock price increase.
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