Heimar hf. Announces Share Buyback Program
During its recent Annual General Meeting, Heimar hf. received approval from its shareholders to initiate a share buyback program. This approval is granted under Article 55 of the Act on Public Limited Companies No. 2/1995, allowing the company to acquire up to 10% of its issued shares. This move underscores the Board of Directors' commitment to enhancing shareholder value.
Details of the Share Buyback Program
The Board of Directors has taken steps to execute a buyback program in line with the shareholders' mandate. The primary goal of this initiative is to reduce the overall number of issued shares in the market. The total amount allocated for this buyback program will not exceed ISK 500,000,000. The actual number of shares to be repurchased will ultimately depend on the prevailing market price during the execution of the buyback.
Current Share Ownership
Prior to initiating the buyback, Heimar hf. currently holds 16,312,500 shares. This existing ownership provides a substantial basis for the planned program, aiming to strike an effective balance between market performance and shareholder returns.
Execution and Oversight of the Buyback
Íslandsbanki has been designated to oversee the execution of the share buyback program. They will independently make all decisions regarding share acquisitions, including the appropriate timing for purchases. This independent oversight is essential to ensure that the buyback adheres to market regulations and best practices.
Compliance with Regulations
The buyback program will be carried out in accordance with the relevant legislation, including the Act on Public Limited Companies No. 2/1995 and the European regulations aimed at preventing market abuse. This compliance is critical for maintaining transparency and investor trust through the execution of the program.
Program Stipulations and Limitations
The buyback process is structured to occur in stages. The maximum amount of shares that may be repurchased each day will not exceed 25% of the daily average trading volume on Nasdaq OMX Iceland over the last 20 business days. Additionally, the purchase price will be capped at either the last independent transaction price or the highest independent existing purchase bid, according to whichever is greater. This pricing strategy is designed to ensure that the buyback does not unduly influence the market.
Timeline of the Buyback Program
This significant buyback initiative is set to commence from October 16, 2024, and will run until the next Annual General Meeting in 2025, unless the program's maximum purchase limits are reached before that date. Heimar retains the right to modify the overall purchase price limit or to halt the program altogether, depending on prevailing market conditions and strategic considerations.
Future Communications
Heimar hf. emphasizes its commitment to transparency throughout this process. Notices regarding transactions under the buyback program will be published to keep shareholders informed in accordance with applicable laws and regulations.
Contact Information
For additional inquiries, please reach out to:
Björn Eyþór Benediktsson, CFO, eythorb@heimar.is
Frequently Asked Questions
What is the purpose of Heimar's share buyback program?
The primary purpose is to reduce the number of issued shares and enhance shareholder value.
How much is Heimar allocating for the buyback?
Heimar plans to spend a total of up to ISK 500,000,000 on the share buyback program.
Who oversees the execution of the buyback program?
The execution will be supervised by Íslandsbanki, which will make independent decisions regarding share acquisitions.
When will the buyback program commence?
The program is set to start on October 16, 2024, and will continue until the Annual General Meeting in 2025, if not terminated earlier.
How will Heimar ensure compliance with regulations during the buyback?
The buyback will be executed following relevant laws, including those aimed at preventing market abuse and ensuring transparency.
