ISS Launches Significant DKK 2.5 Billion Buyback Initiative
ISS Announces a DKK 2.5 Billion Share Buyback Program
Company Announcement
ISS A/S (“ISS”), a prominent name in workplace experience and facility management, has declared an exciting initiative. The company’s Board of Directors approved the initiation of a share buyback program amounting to a remarkable DKK 2.5 billion.
Objective of the Buyback Program
The primary aim of this share buyback program is to return excess cash to shareholders. It is designed to (i) reduce the share capital and (ii) fulfill commitments arising from ISS’ share-based incentive programs. This strategic decision reflects ISS's commitment to enhancing shareholder value while maintaining robust financial health.
Structure of the Program
The share buyback program will be carried out under the current authorization that the Board of Directors obtained from the Annual General Meeting. It adheres to both the European Market Abuse Regulation and the Safe Harbour Regulation.
Set to begin on 20 February 2025, the program will be executed over a 12-month timeframe, concluding no later than 13 February 2026. This initiative is scheduled to unfold in two separate tranches. The initial tranche, capped at DKK 1,250 million, will commence on 20 February 2025 and is expected to end by 11 August 2025.
Second Tranche Details
Following the completion of the first tranche, the second tranche will seek to fulfill the overall target of DKK 2.5 billion, with finalization set no later than 13 February 2026. To ensure the effective execution of the buyback, ISS has enlisted the expertise of Skandinaviska Enskilda Banken, Denmark, a branch of Skandinaviska Enskilda Banken AB (publ), Sweden, to manage the program independently.
Framework of the Share Buyback
This share buyback initiative will follow certain guidelines:
- The annual cap for share acquisitions during the program is DKK 2.5 billion.
- ISS plans to repurchase a maximum of 18 million shares within this time frame.
- Daily purchases will be limited to no more than 25% of the average daily volume of ISS shares traded on Nasdaq Copenhagen in the preceding 20 trading days.
- The price paid for these acquisitions will not deviate by more than 10% from the prevailing Nasdaq Copenhagen price at the time of purchase.
- ISS may pause or terminate the program at any time, with immediate public disclosure.
- Weekly announcements will outline the transactions conducted under the buyback initiative.
About ISS
ISS stands as a key player in the global market, delivering outstanding workplace and facility service solutions. The company thrives on collaboration with clients, focusing on enhancing engagement, well-being, and environmental responsibility, while ensuring the effective maintenance of properties. Through innovative data utilization and exceptional service delivery, ISS operates in diverse locations including offices, factories, airports, and hospitals worldwide. With over 325,000 employees, known as “placemakers”, ISS reported a group revenue of DKK 78.7 billion in 2023.
Contact Information
For investor inquiries, please reach out to Michael Vitfell-Rasmussen, Head of Group Investor Relations, at +45 53 53 87 25.
For media inquiries, connect with Charlotte Holm, Head of External Communication, at +45 41 76 19 89.
Frequently Asked Questions
What is the purpose of ISS's share buyback program?
The program aims to return excess cash to shareholders and manage share capital through the repurchase of shares.
How much will ISS spend on the buyback program?
ISS intends to utilize up to DKK 2.5 billion over 12 months for the share buyback.
When will the buyback program commence?
The share buyback program is set to begin on 20 February 2025.
Who is managing the buyback program for ISS?
Skandinaviska Enskilda Banken has been appointed as the lead manager for executing the buyback program.
How often will ISS report on the share buyback transactions?
ISS will issue weekly announcements detailing the transactions made under the buyback program.
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