Alm. Brand A/S Initiates Exciting Share Buyback Program
In a bold move to enhance shareholder value, Alm. Brand A/S has announced its decision to embark on a share buyback program, leveraging a robust solvency ratio following the divestment of its Energy and Marine segments. The initiative allows for the repurchase of treasury shares valued at up to DKK 835.2 million.
Commitment to Shareholders
The Board of Directors, committed to optimizing shareholder returns, received authority granted at the company’s annual general meeting. This gives them the green light to buy back up to 10% of the total share capital. The buyback program is planned to run until the end of April 2025, pending a renewal of this authority at the following annual meeting.
The Purpose of the Buyback
The primary goal of this buyback program is to decrease the overall share capital, strengthening the existing shares through cancellation, which will be proposed at a future general meeting. This reflects a strategic approach toward managing capital and enhancing capital efficiency for shareholders.
Program Timeline and Execution
The share buyback is scheduled to commence on March 5, 2025, and will extend until at least March 30, 2026. Within this timeframe, Alm. Brand A/S plans to acquire treasury shares totaling DKK 835.2 million, adhering strictly to European regulations surrounding such transactions.
Guidelines for Share Repurchases
To ensure compliance and effectiveness, Alm. Brand A/S has outlined specific guidelines for the share repurchase process:
- A lead manager has been appointed to independently manage trading decisions, ensuring unbiased execution of the buybacks. Danske Bank A/S has been designated for this critical role.
- The company may repurchase up to 110 million shares, equating to approximately 7.1% of its existing share capital, creating an immediate impact on shareholder equity.
- Shares will only be acquired within a price range not deviating more than 10% from the latest market prices, safeguarding financial prudence.
- Additionally, shares must not exceed the last registered trade price or the highest independent quotes at the trading venue, ensuring competitive and logical buyback pricing.
- On any given trading day, the volume of buybacks must not surpass 25% of the average trading volume in the preceding 20 days, which reinforces market stability and investor confidence.
Following the initiation of this share buyback program, Alm. Brand A/S commits to transparency. Weekly updates on the progress and outcomes of the transactions will be published, paving the way for open communication with its investors.
Contact Information
For more information or inquiries regarding this announcement, please contact:
Investors and Equity Analysts:
Head of IR, Rating & ESG Reporting
Mads Thinggaard
Mobile: +45 2025 5469
Frequently Asked Questions
What is the purpose of Alm. Brand A/S's buyback program?
The program aims to reduce the share capital, ultimately enhancing shareholder value through share cancellation.
How much is Alm. Brand A/S planning to spend on this buyback program?
Alm. Brand A/S intends to use up to DKK 835.2 million for the share buybacks.
Who is managing the share buyback program?
Danske Bank A/S has been appointed as the lead manager to oversee the process independently.
What are the restrictions on share prices during the buybacks?
Shares are not to be acquired at more than a 10% deviation from the most recent market price, ensuring prudent financial practices.
How will updates on the buyback program be communicated?
Alm. Brand A/S will publish weekly updates regarding the share buybacks to ensure transparency with investors.
