Kaldalón hf. Launches Strategic Share Buyback Initiative
Kaldalón hf. Announces New Share Buyback Program
Kaldalón hf. is thrilled to share that it has initiated a share buyback program, empowering the Company to repurchase its shares effectively. This decision comes after gaining the necessary authorization from the shareholders' meeting held on a day in July 2024, paving the way for a strategic move that aligns with the Company's long-term goals.
Details of the Share Buyback Program
The program allows the Board of Directors at Kaldalón to repurchase shares while adhering to legal standards. This initiative is part of the Company's strategy for market making and complies with the EU Market Abuse Regulation and relevant Icelandic laws. According to the granted authorization, Kaldalón can repurchase up to 10% of its share capital, equating to ISK 1,119,568,483 or a maximum of 111,956,848 shares, ensuring regularity and transparency in the process.
Previous Share Repurchases
Kaldalón has already demonstrated its commitment to enhancing shareholder value by repurchasing 33,700,150 shares in 2024, representing an investment of ISK 613,868,947. This proactive approach reflects the Company’s dedication to shareholder interests, particularly after the share capital reduction finalized in May 2025, during which the Company currently has no treasury shares.
Program Execution Timeline and Objectives
The newly initiated share buyback program starts from July 1, 2025, with an operational timeline extending until Kaldalón meets either the set volume or financial thresholds—or until December 31, 2025, whichever comes first. The Company aims to repurchase up to 15,000,000 shares for a total outlay that will not exceed ISK 350,000,000. This approach aims to streamline Kaldalón's share capital and enhance overall market positioning.
Role of Íslandsbanki hf.
To ensure an effective buyback strategy, Íslandsbanki hf. will oversee the program’s implementation. This partnership is crucial as it allows the bank to independently manage share repurchases while making informed decisions regarding timing and volumes. By involving a reputable banking institution, Kaldalón underlines its commitment to carry out the buyback in compliance with all regulatory stipulations.
Regulatory Compliance for Transparency
Adhering to regulations is paramount throughout the buyback process. Kaldalón will ensure that all repurchasing activities are conducted transparently. The pricing strategy involves adhering to the higher price of either the last independent transaction or the current highest purchase offer in the trading system. Daily purchases will be regulated, limited to 25% of the average daily trading volume based on the preceding 20 trading days, ensuring fair trading practices.
Commitment to Shareholders
Kaldalón hf.’s share buyback initiative exemplifies its dedication to maximizing shareholder value while reinforcing the investors’ confidence and trust in the organization. With a solid track record of responsible financial management and strategic planning, Kaldalón is set to use this buyback program to solidify its market position and deliver on shareholders’ expectations.
Frequently Asked Questions
What is the aim of Kaldalón's share buyback program?
The share buyback program aims to enhance shareholder value by reducing issued share capital and repurchasing up to 15 million shares.
When will the buyback program commence?
The program is set to start on July 1, 2025, and will be active until the set limits are reached or until December 31, 2025.
Who will manage the buyback program?
Íslandsbanki hf. will supervise the execution of the buyback program, making independent decisions regarding share acquisitions.
How many shares can Kaldalón repurchase?
Kaldalón plans to repurchase up to 15 million shares in total for a maximum investment not exceeding ISK 350 million.
What pricing strategy will Kaldalón employ?
The purchase price will not exceed the greater of the last independent transaction price or the highest current purchase offer in the market.
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