Kitron ASA Announces Share Buyback Program for 2025
Kitron ASA Launches Share Buyback Initiative
Kitron ASA has embarked on an exciting journey by initiating a share buyback program to enhance its shareholder value. This strategic decision reflects the company’s commitment to rewarding its investors and strengthening its financial position.
Details of the Share Buyback Program
Share Purchase Parameters
The company plans to buy back up to 16,000 of its own shares for a maximum amount of NOK 900,000. The program is set to run from the announcement day until September 12, 2025. This initiative is aimed at optimizing the allocation of resources and improving the return on equity for shareholders.
Compliance with Regulatory Framework
Kitron's buyback will be executed in compliance with the EC Commission Delegated Regulation (EU) No. 2016/1052. This regulation provides guidelines to prevent market manipulation during share buybacks, ensuring transparency and fairness in all transactions.
Purpose of the Buyback Program
The primary goal of the share buyback program is to acquire shares that will be used for the remuneration of the board members from May 2025 to April 2026. This decision was firmly established during the annual general meeting held in April 2025, demonstrating the company's effort to align executive compensation with shareholder interests.
Operational Dynamics of Buybacks
Engagement with Norne Securities AS
To facilitate the buybacks, Kitron has enlisted the expertise of Norne Securities AS. This partnership is designed to ensure that the buybacks are carried out efficiently and in accordance with the authorization granted by the annual general meeting.
Share Acquisition Conditions
The company has set specific conditions for the share acquisitions, which include purchasing shares at a minimum of NOK 1, yet not exceeding a prevailing market price of NOK 100 per share. The company may acquire up to 19,891,716 shares under this program, which remains valid until the annual general meeting in 2026 or until June 30, 2025.
Market Context for Buybacks
All acquisitions under this buyback initiative will take place on the Euronext Oslo Børs. The execution of any share repurchases will depend heavily on the current market conditions, ensuring that the company acts in the best interests of its shareholders.
Future Considerations
Kitron reserves the right to discontinue the buyback program at any time. The company emphasizes a condition that allows it to terminate the program if it deems that the set threshold for share purchases is not reached.
Current Shareholding Status
As noted, Kitron does not hold any of its own shares at the time of this announcement, underscoring the fresh start of this buyback initiative and the company's readiness to enhance shareholder engagement.
Company Overview
Kitron ASA is recognized as a leading player in the Scandinavian electronics manufacturing services sector. Focusing on Connectivity, Electrification, Industrial, Medical Devices, and Defence/Aerospace markets, Kitron has established operations across multiple countries, including Norway, Sweden, Germany, and the United States. With a workforce of approximately 2,400 employees, the company reported revenues of EUR 647 million in the last fiscal year.
Contact Information for Inquiries
For more insights regarding the buyback program or other company-related matters, reach out to Cathrin Nylander, CFO, at +47 900 43 284. You can also get in touch via email for more details.
Frequently Asked Questions
What is the purpose of Kitron ASA's share buyback program?
The purpose is to enhance shareholder value and to support the remuneration of board members from May 2025 to April 2026.
How many shares will Kitron ASA buy back?
Kitron ASA plans to repurchase up to 16,000 shares for a maximum total amount of NOK 900,000.
Who is handling the share buybacks for Kitron ASA?
Norne Securities AS has been engaged to conduct the share buybacks efficiently.
When will the share buyback program take place?
The buyback program is set to run from the announcement until September 12, 2025.
What regulatory framework governs the buyback program?
The buyback will be executed according to the EC Commission Delegated Regulation (EU) No. 2016/1052.
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