Alm. Brand A/S Implements a Strategic Share Buyback Programme
In light of a strong solvency ratio and the profit outlook, the Board of Directors of Alm. Brand A/S has announced the initiation of a treasury share buyback programme amounting to DKK 52.2 million. This decision comes as a proactive measure to optimize the company’s capital structure and return value to shareholders.
Purpose Behind the Buyback Programme
The primary aim of the share buyback initiative is to reduce the company’s overall share capital. To solidify this plan, Alm. Brand A/S intends to propose a resolution during the upcoming general meeting to formally cancel the shares acquired under the buyback programme.
Enhancing Shareholder Value
This strategic move aligns with Alm. Brand A/S's commitment to enhancing shareholder value and reflects confidence in its financial performance and future prospects. By decreasing the number of outstanding shares, the company aims to increase the earnings per share, potentially boosting stock prices in the long term.
Timeline for the Share Buyback
The share buyback programme is set to run from early February through the end of the month. During this period, Alm. Brand A/S is on track to purchase treasury shares in accordance with established regulation, specifically adhering to article 5 of the European Regulation No 596/2014, which sets the framework for such financial activities.
Regulatory Compliance
The initiative complies with the ‘Safe Harbour’ rules, ensuring that all transactions remain within the defined legal boundaries. The trading will take place under the supervision of a lead manager appointed by Alm. Brand A/S, ensuring an independent process for share acquisitions.
Terms of the Buyback Programme
Several key terms govern the share buyback programme to maintain regulatory compliance and promote transparency:
- Alm. Brand A/S has appointed Danske Bank A/S as the lead manager to conduct the buyback activities. This separation is crucial to avoid any undue influence over trading decisions.
- The company is authorized to acquire up to 7 million shares, representing approximately 0.45% of its current share capital.
- Acquisitions will not occur at a price exceeding 10% variance from the most recent market value, ensuring fair trading practices.
- No purchases will exceed the highest independent market quote or the price of the last independent transaction.
- Daily purchase limits are set at 25% of the average daily trading volume over the preceding 20 days, promoting a balanced trading strategy.
Transparency and Reporting
To maintain transparency with its stakeholders, Alm. Brand A/S will disseminate weekly updates regarding the status of the buyback programme. Additionally, a comprehensive report will be released at the conclusion of the buyback process, detailing all transactions conducted.
Contact Information
For inquiries related to this announcement, stakeholders are encouraged to reach out directly:
Contact Details:
Head of Investor Relations, Rating & ESG Reporting
Mads Thinggaard
Mobile no. +45 2025 5469
Frequently Asked Questions
Why has Alm. Brand A/S initiated a share buyback programme?
The programme is designed to reduce the number of outstanding shares, thereby enhancing shareholder value while reflecting the company's strong financial standing.
Who is managing the share buyback process?
Danske Bank A/S has been appointed as the lead manager to ensure the handling of share acquisitions is independent and regulated.
What is the total amount allocated for the buyback?
Alm. Brand A/S has allocated DKK 52.2 million for the buyback programme.
Is the buyback programme in compliance with regulations?
Yes, the programme is structured to comply with the EU regulations, particularly the ‘Safe Harbour’ rules.
How often will updates be published during the buyback period?
Alm. Brand A/S will release weekly updates along with a final summary after the programme concludes.
