Festi hf. Announces Execution of Buyback Program
Festi hf. has recently taken significant steps to execute a buyback program, a decision made during its Annual General Meeting. This strategic maneuver aims to support the company's financial health and shareholder value. The Board of Directors has received authorization to repurchase up to 10% of its issued share capital, a move designed not only to reduce overall share capital but also to fulfill obligations related to employee stock options.
Details of the Buyback Program
The company plans to repurchase as many as 2,500,000 shares, which represents approximately 0.80% of its issued share capital. The total budget allocated for this buyback program is capped at ISK 825 million. This careful planning demonstrates Festi’s commitment to maintaining robust shareholder returns and a balanced equity structure.
Execution Timeline and Flow
Share repurchases under this initiative will occur gradually. Each day, the maximum number of shares Festi can purchase is limited to two criteria: either 25% of the average daily turnover of its shares on Nasdaq Iceland over the last 20 trading days or 25% based on turnover metrics from November 2025, with a daily cap of 100,000 shares. This structured approach ensures that the buyback is executed systematically, maintaining market stability.
Price Parameters for Purchases
Festi has established clear guidelines regarding the price of shares during buyback transactions. The purchase price may not exceed the price from the most recent independent transaction or the highest independent bid in the Nasdaq Iceland trading venue, whichever is higher. This policy protects investors and reinforces transparency in the company's operations.
Oversight of the Buyback Program
ACRO verðbréf hf. has been designated to oversee the execution of the buyback program. This independent oversight allows for objective decision-making regarding the timing and scale of share acquisitions, ensuring that the buybacks align strategically with market conditions.
Regulatory Compliance
Festi is committed to adhering to legal obligations throughout the buyback process. The execution shall be in line with the Act on Public Limited Companies and relevant European Union regulations on market abuse. These compliance measures are critical to maintaining investor confidence and ensuring fair market practices.
Current Shareholding Status
Before initiating the buyback, Festi hf. currently holds 2,746,226 shares, equating to about 0.88% of its issued share capital. This position places the company in a favorable state as it embarks on the buyback initiative, potentially enhancing its capital structure and shareholder value.
Contact Information for Inquiries
For any further information regarding this buyback program or related financial inquiries, interested parties can reach out to Magnús Kr. Ingason, the CFO of Festi. He can be contacted via email at mki@festi.is.
Frequently Asked Questions
What is the purpose of Festi hf.'s buyback program?
The buyback program aims to reduce share capital and fulfill employee stock option agreements.
How many shares does Festi plan to repurchase?
Festi plans to repurchase up to 2,500,000 shares, equivalent to about 0.80% of its issued share capital.
Who oversees the buyback program?
The buyback program will be supervised by ACRO verðbréf hf., ensuring independent decision-making.
When will the buyback program commence?
The buyback program is scheduled to start on 4 December 2025.
What is the current shareholding status of Festi?
Festi currently holds 2,746,226 shares, representing approximately 0.88% of its issued share capital.
