Royal Unibrew A/S Announces Share Buy-Back Initiative
The Board of Directors of Royal Unibrew A/S has made a significant decision to initiate a share buy-back program, which will involve up to DKK 250 million. This strategic move aims to adjust the capital structure of the company effectively.
Objectives Behind the Buy-Back Program
The primary objective of this buy-back initiative is to optimize the financial standing of Royal Unibrew A/S. By reacquiring its own shares, the company intends to enhance shareholder value and ensure a stable capital structure that better reflects its long-term growth potential.
Details of the Authorization
Authorization for this buy-back has been granted during the Annual General Meeting held on April 30, 2024. It allows Royal Unibrew A/S to acquire treasury shares, limited to a total of 10% of its share capital. It is noteworthy that post-acquisition, the company’s holding of treasury shares cannot exceed the same 10% threshold.
Regulatory Compliance
The buy-back program will be conducted in accordance with European regulations aimed at ensuring market integrity. Specifically, it adheres to Article 5 of Regulation (EU) No 596/2014 and the Commission Delegated Regulation (EU) 1052/2016, commonly referred to as the “Safe Harbour Regulation.” This ensures that all transactions are transparent and maintain market stability.
Timeline and Scope of the Buy-Back
The commencement of the buy-back program is set for February 26, 2025, with a completion date no later than August 15, 2025. Over this period, the program is anticipated to represent a market value of up to DKK 250 million, translating to approximately 0.45 million shares based on the share price observed prior to its initiation.
Lead Management and Trading Decisions
Royal Unibrew has appointed Skandinaviska Enskilda Banken (SEB) as the Lead Manager for the share buy-back program. SEB will operate independently, making trading decisions without direct involvement from Royal Unibrew. This approach ensures that the buy-back process is managed professionally, aligning with market best practices.
Trading Restrictions
To manage the buy-back thoughtfully, the program will limit daily purchases to no more than 25% of the daily average trading volumes recorded over the preceding 20 trading days. This strategy helps maintain an orderly market and mitigates potential price fluctuations.
Financial Management and Share Value
The company will only repurchase shares at a price that is not more than the higher of the latest independent transaction price or the highest independent bid on Nasdaq Copenhagen A/S. This ensures that the share buy-backs occur at fair prices while safeguarding shareholder interests.
Possible Suspension of the Buy-Back Program
Royal Unibrew retains the right to suspend the buy-back program if any material changes occur in either the company’s circumstances or the broader market conditions. Should a suspension take place, the company intends to notify the market through a Company Announcement, and SEB will cease share acquisitions immediately.
Communication of Buy-Back Results
To keep shareholders informed, Royal Unibrew will publish weekly announcements detailing the number of shares bought back and their total value. This transparent communication is crucial for maintaining investor trust and confidence in the program.
Contact Information
For any inquiries related to the share buy-back program, investors can reach out to:
Flemming Ole Nielsen (Head of Investor Relations)
E-mail: Flemming.Nielsen@royalunibrew.com
Telephone: +45 25 41 68 04
Frequently Asked Questions
What is the main reason for the share buy-back?
The main reason for initiating the share buy-back is to adjust the capital structure of Royal Unibrew A/S and enhance shareholder value.
Who is managing the buy-back program?
Skandinaviska Enskilda Banken (SEB) has been appointed as the Lead Manager for the share buy-back program.
When will the share buy-back program start and end?
The program will commence on February 26, 2025, and is expected to complete by August 15, 2025.
How will the price of repurchased shares be determined?
The price will be determined based on the latest independent transaction price or the highest independent bid on Nasdaq Copenhagen A/S, whichever is higher.
Will there be updates on the buy-back progress?
Yes, Royal Unibrew will issue weekly announcements detailing the number of shares repurchased and their total value.
