Eimskip Launches Strategic Share Buy-Back Initiative
Eimskip Initiates a Share Buy-Back Program
In an exciting development for shareholders, Eimskip has received authorization from its shareholders to undertake a significant share buy-back program. This decision, made at the Annual General Meeting, empowers the Board of Directors to repurchase up to 10% of the company’s issued shares, illustrating a strong commitment to enhancing shareholder value.
Details of the Share Buy-Back Program
The Board's decision to launch this initiative comes as part of a broader strategy aimed at reducing the company's share capital while also fulfilling obligations associated with its stock option plans. Specifically, Eimskip aims to acquire up to 2,250,000 shares under this program, with a maximum total purchase price capped at ISK 750,000,000. This strategic financial move highlights Eimskip's confidence in its ongoing performance and market position.
Importantly, the purchasing strategy is designed to ensure that shareholders benefit directly, as the shares will be acquired without exceeding the price of the most recent independent trade or the highest independent bid available on Nasdaq Iceland at the time of each transaction. This approach not only protects the interests of shareholders but also reflects Eimskip's commitment to transparency and fair market practices.
Implementation and Management of the Program
The management of the buy-back process has been entrusted to ACRO verðbréf hf., a trusted securities firm. They will have autonomy over the execution of share purchases and the timing of each transaction, ensuring that the process is handled efficiently and separately from Eimskip's operational dealings. Under this program, Eimskip will conduct a reverse tender offer utilizing the Dutch auction method, allowing all shareholders to submit offers to sell their shares through ACRO verðbréf hf.
It’s important for shareholders to note that Eimskip retains the right to either accept or reject offers in whole or in part, which provides additional flexibility within the buy-back framework. This structured approach is intended to maximize value for shareholders while maintaining compliance with relevant regulations.
Legal Compliance and Regulatory Framework
In alignment with legal standards, the execution of the buy-back program will adhere to the Act on Public Limited Companies and corresponding EU market regulations. Eimskip is committed to conducting this program in strict adherence to Regulation (EU) No. 596/2014 on market abuse and the Icelandic Act on Measures Against Market Abuse. These regulations ensure that the program is executed in a manner that upholds the integrity of the market and protects shareholder interests.
How to Participate
Shareholders who are interested in participating in this buy-back initiative must submit their offers to ACRO verðbréf hf. by a specified deadline, ensuring timely processing of requests. Contact details have been provided for shareholders to reach ACRO for further details about the buy-back process. Participating in this program may provide shareholders with an opportunity to capitalize on their investments while supporting Eimskip’s strategic financial goals.
Current Status of Treasury Shares
Before initiating this buy-back program, Eimskip holds 1,725,320 treasury shares, which positions the company favorably as it embarks on this new financial venture. This move signals to the market that Eimskip is proactive in managing its share structure, reinforcing its stance as a forward-thinking leader in the industry.
Contact Information
For shareholders seeking further details regarding the buy-back program, they can reach out directly to Rósa Guðmundsdóttir, CFO, or Guðbjörg Birna Björnsdóttir, Head of Treasury & Investor Relations. Their contact information has been provided for ease of communication, fostering an open dialogue between the company and its valued shareholders.
Frequently Asked Questions
What is the purpose of Eimskip's share buy-back program?
The program aims to reduce the company's share capital and fulfill stock option obligations.
How many shares is Eimskip planning to buy back?
Eimskip plans to acquire up to 2,250,000 shares under this buy-back initiative.
Who is managing the buy-back program?
The program will be managed by ACRO verðbréf hf., which will handle all transactions independently.
What regulatory standards will the buy-back program adhere to?
The buy-back program will comply with relevant acts and regulations regarding market conduct and public limited companies.
How can shareholders participate in the buy-back program?
Shareholders can submit their offers to ACRO verðbréf hf. by the specified deadline to participate.
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