FLSmidth Initiates Major Share Buy-Back Initiative
In a significant financial move, FLSmidth & Co. A/S has announced the launch of a share buy-back program, aiming to repurchase shares worth up to DKK 1.4 billion. This initiative is set to commence immediately and is expected to conclude before the next Annual General Meeting. This meeting is anticipated to take place in March of the following year.
Objectives of the Share Buy-Back Program
The primary aim of this buy-back program is to fine-tune the company's capital structure. By repurchasing shares, FLSmidth also intends to satisfy its obligations stemming from share-based employee incentive programs. If shares acquired through this initiative are not used for these obligations, they will be proposed for cancellation at a forthcoming General Meeting.
Key Authorizations and Guidelines
The authorizations necessary for this initiative were granted to the Board of Directors during the last Annual General Meeting, which was held earlier this year. This allows FLSmidth to buy back its own shares up to a limit of 10 percent of its total share capital. Importantly, the purchase price must not vary by more than 10 percent from the market price listed on Nasdaq Copenhagen at the time of acquisition.
Management and Execution of the Program
BNP Paribas has been appointed to handle the daily operations of the buy-back program. The independent manager will handle all trading decisions, ensuring that FLSmidth's interests are maintained throughout the process. The company will limit its share purchases to a specified percentage of the average trading volume, maintaining market stability.
Structuring the Share Buy-Back
Under the buy-back initiative, FLSmidth may repurchase up to 4,600,000 shares, which is approximately 8 percent of the company's share capital. To maintain a fair trading environment, the company will ensure that the number of shares bought each trading day does not exceed 25 percent of the average daily trading volume over the preceding 20 days.
Suspension Rights and Future Updates
FLSmidth retains the right to suspend the buy-back program at any time. If such a decision is made, it will promptly be communicated through a company announcement. Regular updates regarding the transactions executed under the buy-back program will be provided, adhering to market regulations.
Contacts for Further Information
For any inquiries, the Investor Relations team at FLSmidth is available. Andreas Holkjær can be reached at +45 24 85 03 84, and Jannick Denholt is available at +45 21 69 66 57, both ready to assist with detailed information regarding the share buy-back program.
About FLSmidth
FLSmidth is recognized globally as a leading technology and service supplier to the mining industry. The company focuses on enhancing operational performance while prioritizing sustainability. Its ambitious initiative, MissionZero, aims for zero emissions in mining by 2030, aligning with ambitious science-based targets towards a greener future.
Frequently Asked Questions
What is the purpose of FLSmidth's share buy-back program?
The main purpose is to optimize the capital structure and meet share-based incentive obligations.
How much is FLSmidth planning to spend on the buy-back?
FLSmidth plans to repurchase up to DKK 1.4 billion in shares.
Who is managing the buy-back program?
BNP Paribas has been appointed to manage the buy-back program independently.
What percentage of shares can FLSmidth buy back?
FLSmidth can acquire up to 10 percent of its total share capital as per the given authorization.
When is the buy-back program expected to end?
The program is set to conclude no later than March of the following year.
