Bang & Olufsen A/S Initiates Share Buyback Program
Bang & Olufsen A/S has proudly announced the initiation of a share buyback program valued at DKK 65 million. This strategic move is set to bolster the company’s position while providing support for its share-based long-term incentive plans approved by shareholders.
Purpose of the Buyback Program
The primary goal of this buyback initiative is to manage the company’s share-based incentive schemes effectively. By repurchasing shares, Bang & Olufsen aims to enhance shareholder value and ensure the sustainability of these important incentive plans.
Regulatory Compliance
This program is being executed in strict accordance with EU Commission Regulation No. 596/2014, also known as the Market Abuse Regulation (MAR). It also follows the guidelines set out in the Commission Delegated Regulation (EU) 2016/1052, further assuring compliance with relevant financial regulations.
Board Approval and Company Strategy
This share buyback is being carried out under an authorization granted by the board of directors during the annual general meeting. The directors are allowed to buy back treasury shares up to a total of 10% of the company’s capital. This reflects a robust commitment to managing shareholder equity and capital efficiently.
Management of the Buyback
Nordea has been appointed as the lead manager of Bang & Olufsen’s share buyback program. Under a formal agreement, Nordea will independently make trading decisions concerning the buyback, ensuring operations are conducted without undue influence from Bang & Olufsen.
Guidelines for the Buyback
The following guidelines will govern the execution of the share buyback program:
- The total buyback budget is capped at DKK 65 million, enabling the acquisition of a maximum of 5,000,000 shares. Notably, the total treasury shares must not surpass 10% of the overall share capital.
- Shares will be acquired at fair market prices, ensuring purchases do not exceed the maximum of the most recent independent transaction prices or existing independent purchase bids in the market.
- The volume of shares purchased daily will not exceed 25% of the average trading volume over the preceding 20 trading days, maintaining market stability.
- In adherence to transparency practices, Bang & Olufsen will issue public reports of the shares bought every seventh trading day, keeping shareholders informed.
- The company reserves the right to pause or discontinue the buyback program with a formal announcement, demonstrating flexibility in response to market conditions.
Current Holdings
At the commencement of the buyback initiative, Bang & Olufsen A/S holds 3,113,183 treasury shares, equating to approximately 2.1% of the total share capital. This calculated approach signifies the company’s commitment to enhancing shareholder equity through prudent financial management.
For further inquiries or details about the share buyback program, please reach out to:
Sr. Director, Strategy & Investor Relations, Cristina Rønde Hefting, telephone: +45 4153 7303.
Frequently Asked Questions
What is the purpose of Bang & Olufsen's share buyback program?
The program aims to hedge share-based long-term incentive plans and enhance shareholder value.
How much is Bang & Olufsen allocating for the buyback?
A total of DKK 65 million has been designated for the share buyback program.
Who is managing the buyback program?
Nordea has been appointed as the lead manager for the execution of the buyback program.
What are the buyback program's trading volume limits?
Daily share purchases will not exceed 25% of the average daily trading volume over the last 20 trading days.
Is the company required to report on the buyback program?
Yes, Bang & Olufsen will report its purchases at least every seventh trading day to maintain transparency.
