BankNordik initiates new share buyback programme
Post# of 301275
Announcement no. 27/2018
The Board of Directors in BankNordik P/F (BankNordik) has decided to exercise a share buyback programme with a value of up to DKK 15 million.
The share buyback programme is initiated within the authority to buy back shares granted by the annual general meeting on 30 March 2016. This share buyback programme has also been permitted by the Danish Financial Supervisory Authority.
The share buyback programme runs from 6 August 2018 until latest 30 March 2019. In this period BankNordik will acquire shares with a value of up to DKK 15 million. The share buyback programme is initiated and structured in compliance with the EU Commission Regulation No. 596/2014 of 16 April 2014 and the EU Commission Regulation No. 2016/1052 with supplementary rules, also referred to as the Safe Harbour rules, which ensures that BankNordik is protected against violation of insider legislation in relation to the share buyback programme.
Prior to the launch of the share buyback programme BankNordik holds 338,009 treasury shares, excluding investments made on behalf of customers and shares held for trading purposes, with a nominal value of DKK 20, equal to 3.38% of the company’s share capital.
The share buyback programme implies a decrease in the Group’s CET1 capital ratio by 0.1 percentage point to 16.2% compared to 16.3% at 30 June 2018. The total capital ratio will decrease to 18.4% from 18.5% at 30 June 2018.
BankNordik has chosen not to recognise net income within a given year in the capital and solvency statement until the annual report is released in audited form.
Conditions for the share buyback programme
- The purpose of the share buyback programme is to address the company’s capital structure.
- BankNordik has entered into a contract with ABG Sundal Collier, in which ABG Sundal Collier acts as financial advisor and as Lead Manager of the share buyback programme. ABG Sundal Collier handles all purchase transactions independently and without influence from BankNordik.
- The maximum amount that BankNordik may pay for shares purchased under this share buyback programme is DKK 15 million. However the authorization given by the annual general meeting entitles to buy back own shares up to 10% of the company’s share capital.
- The shares cannot be purchased at prices exceeding the higher of (i) the price of the latest independent trade and (ii) the price of the highest independent bid on Nasdaq Copenhagen at the time of the transaction.
- The total number of shares that may be purchased on a single trading day may not exceed 25% of the average daily trading volume over the preceding 20 trading days on Nasdaq Copenhagen.
- BankNordik will announce the number of purchased shares, as well as the value, on a weekly basis in a separate announcement to Nasdaq Copenhagen. The transactions related to the share buyback programme will also be presented in a detailed form, in accordance with the EU Commission Regulation No. 596/2014 of 16 April 2014.
BankNordik is entitled to discontinue the share buyback programme at any time. Any such decision will be communicated via seperat company announcement to Nasdaq Copenhagen.
Further information:
Árni Ellefsen, CEO, tel. (+298) 230 348
BankNordik has banking activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands. Founded in the Faroe Islands more than a century ago, the Group has total assets of DKK 16.7bn and 390 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Copenhagen.