Scandinavian Tobacco Group Enhances Shareholder Value Through Buy-back

Scandinavian Tobacco Group Strategy on Share Buy-Back Programme

Scandinavian Tobacco Group A/S has recently taken steps to enhance its shareholder value by implementing a share buy-back programme. This strategic move is designed to adjust the Company’s capital structure and address obligations related to the Group’s share-based incentive programme. Announced on 10 November 2023, the programme aims for an aggregated value of up to DKK 850 million, showcasing the company’s commitment to its investors.

The share buy-back programme comprises two components: one aligns with the Market Abuse Regulation, while the other involves directed buy-backs from prominent investors. Notable entities involved include Chr. Augustinus Fabrikker Aktieselskab and C.W. Obel A/S, as detailed in the company's previous announcements. The culmination of this programme is set for no later than 28 February 2025, reflecting a well-timed adjustment in market dynamics.

Recent Transactions Overview

From 09 September to 13 September 2024, Scandinavian Tobacco Group executed several key transactions as part of this buy-back initiative. During this period, the company has acquired a total of 95,636 shares. The breakdown of these transactions sheds light on the careful and calculated measures taken to effectuate the buy-back:

Accumulated, last announcement: 6,364,973 shares purchased.
Total transactions from 09 Sep – 13 Sep 2024: 95,636 shares at an average purchase price of DKK 105.71 with a total value of DKK 10,110,035.

Expanding Treasury Holdings

Following the execution of these transactions, Scandinavian Tobacco Group now holds a total of 5,905,823 treasury shares, representing 6.87% of its total share capital. This enhancement reflects a robust action towards strengthening the forefront of shareholder returns while maintaining a stable capital structure.

The company's shares were purchased at an average rate with strategic timing: for instance, on 9 September 2024 alone, the company bought 20,000 shares at DKK 105.70 each. The consistency in share buy-backs, executed every day during the reporting period, illustrates the Group's proactive stance in capital management.

Collaboration with Major Stakeholders

A significant aspect of this programme includes the collaboration with major stakeholders like Chr. Augustinus Fabrikker Aktieselskab and C.W. Obel A/S, who have chosen to participate based on predetermined pro-rata agreements. This cooperative effort emphasizes unity in the company’s long-term strategy, aligning interests between shareholders and the management team.

These stakeholders are integral to the ongoing success of Scandinavian Tobacco Group. Their participation not only provides liquidity for the buy-back programme but also benchmarks the company’s trajectory towards enhanced profitability and shareholder returns.

About Scandinavian Tobacco Group A/S

Scandinavian Tobacco Group A/S stands as a global leader in the tobacco industry, renowned for its manufacture of both handmade and machine-rolled cigars. With an impressive annual output exceeding four billion cigars, the company maintains top-tier positions across multiple market segments, distributing products to over 100 countries worldwide.

Headquartered in Copenhagen, Denmark, Scandinavian Tobacco Group employs a workforce of approximately 10,000 individuals spread across various countries, including the U.S., Canada, and several countries in Latin America and Asia. This widespread reach underpins the company's capability to cater to a diverse customer base, enhancing its market influence.

For further inquiries, stakeholders can contact Torben Sand, Head of IR & Communication at +45 5084 7222 or Eliza Dabbagh, IR and Communication at +45 5080 7619.

Frequently Asked Questions

What sparked the share buy-back programme by Scandinavian Tobacco Group?

The buy-back programme was initiated to adjust the company's capital structure and to meet obligations concerning its share-based incentive programme.

How many shares has Scandinavian Tobacco Group bought back?

As of the latest update, the company bought back 95,636 shares from 09 September to 13 September 2024.

Who are the main stakeholders involved in the buy-back programme?

The programme involves significant stakeholders like Chr. Augustinus Fabrikker Aktieselskab and C.W. Obel A/S who participate based on predetermined pro-rata agreements.

What is the duration set for the buy-back programme?

The share buy-back programme will be concluded no later than 28 February 2025.

How does the buy-back impact shareholders?

This initiative enhances shareholder value by reducing the number of shares outstanding, potentially increasing earnings per share and overall shareholder returns.

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