Kvika Bank Initiates Strategic Buyback Program for Growth
Kvika Bank's Buyback Program Overview
Kvika banki hf., a notable player in the financial sector, has received crucial backing from its shareholders during the recent Annual General Meeting. The board of directors was granted authority to execute a buyback program targeting up to 10% of the bank's issued shares. This is a vital initiative aimed at enhancing shareholder value and managing the bank's capital structure efficiently.
Details of the Buyback Initiative
Following the authorization, the board took action to initiate the buyback program on 27 February 2025. The program aims to acquire shares worth ISK 5 billion, with a maximum authorization to purchase 400 million shares. Currently, Kvika holds approximately 134,410,410 shares in treasury, showcasing the bank's commitment to its strategic goals.
First Tranche Insights
In the previous phase of the buyback program, Kvika successfully utilized ISK 2.5 billion to repurchase 163,590,409 shares, a move that reflects its proactive approach in managing its share capital. The initial tranche concluded by 12 May 2025, with positive responses from the market.
Execution and Supervision of the Program
Arion banki hf. has been appointed to oversee the implementation of the buyback program. This collaboration ensures that all purchases are made independently, adhering strictly to necessary regulations. The execution aligns with the Icelandic Act on Public Limited Companies and relevant European regulations designed to prevent market abuse.
Daily Purchase Regulations
The buyback operations will be structured to comply with specific constraints, ensuring that daily purchases do not surpass 6,893,138 shares. The pricing strategy will be based on either the most recent independent transaction or the highest current purchase bid available on the Nasdaq Iceland stock exchange, guaranteeing transparency and fairness in the process.
Duration and Compliance Measures
The buyback program is set to commence on 26 May 2025, with its validity extending until the annual general meeting in 2026. The program will conclude once Kvika has completed the repurchase of ISK 2.5 billion or acquired a total of 236,409,591 shares, whichever happens first. Compliance with all relevant laws will be upheld throughout the program's duration, ensuring both regulatory fidelity and transparency in the transactions.
Contact for Further Information
For additional details regarding the buyback program, interested parties are encouraged to reach out to Kvika’s investor relations team via email at ir@kvika.is. This initiative is a pivotal part of Kvika's strategy to enhance shareholder relations and contribute positively to its market standing.
Frequently Asked Questions
What is Kvika's buyback program?
The buyback program allows Kvika bank to repurchase its shares to enhance shareholder value and manage its capital structure better.
Who supervises the buyback program?
Arion banki hf. supervises the execution of the buyback program independently and in compliance with regulations.
When does the buyback program start?
The buyback program is scheduled to start on 26 May 2025, and it will remain in effect until the annual general meeting of 2026.
What is the maximum share price during purchases?
The maximum purchase price will be based on the last independent transaction or the highest active purchase bid on the Nasdaq Iceland stock exchange.
How many shares will Kvika repurchase?
Kvika intends to repurchase a total of 236,409,591 shares or until the expenditure reaches ISK 2.5 billion, whichever limit is reached first.
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