Scandinavian Tobacco Group's Strategy for Share Buy-Back Programme
Recently, Scandinavian Tobacco Group A/S has taken significant steps to boost shareholder value through a share buy-back programme. Announced on 10 November 2023, this strategic initiative aims to refine the Company’s capital structure while fulfilling obligations tied to its share-based incentive programme. The overall value targeted for this buy-back is up to DKK 850 million, highlighting the company’s dedication to its investors.
There are two main components to the share buy-back programme: one that aligns with the Market Abuse Regulation and another that involves directed buy-backs from key investors. Notable participants in this process include Chr. Augustinus Fabrikker Aktieselskab and C.W. Obel A/S, as outlined in earlier company announcements. The entire programme is expected to wrap up by 28 February 2025, signaling a timely strategic adjustment in response to market conditions.
Overview of Recent Transactions
Between 09 September and 13 September 2024, Scandinavian Tobacco Group undertook several significant transactions as part of this buy-back initiative. Over this period, the company acquired a total of 95,636 shares. Here’s a closer look at the transactions that illustrate the measured steps taken for 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 price of DKK 105.71, equating to a total value of DKK 10,110,035.
Increasing Treasury Holdings
As a result of these transactions, Scandinavian Tobacco Group now possesses a total of 5,905,823 treasury shares, which accounts for 6.87% of its total share capital. This increase reflects a strong commitment to enhancing shareholder returns while preserving a solid capital structure.
The company executed its purchases strategically, buying shares at an average price. For instance, on 9 September 2024, it purchased 20,000 shares at DKK 105.70 each. The consistent daily buy-backs during this reporting period underscore the Group's proactive approach to capital management.
Working with Major Stakeholders
Collaboration is a crucial element of this programme, with major stakeholders such as Chr. Augustinus Fabrikker Aktieselskab and C.W. Obel A/S actively participating according to predetermined pro-rata agreements. This cooperative effort shows a united front in the company’s long-term strategy, aligning the interests of shareholders with those of the management team.
These stakeholders play a vital role in the ongoing success of Scandinavian Tobacco Group. Their involvement not only adds liquidity to the buy-back programme but also sets a benchmark for the company’s goal of improving profitability and shareholder returns.
About Scandinavian Tobacco Group A/S
Scandinavian Tobacco Group A/S is a prominent player in the tobacco industry, recognized for producing both handmade and machine-rolled cigars. With an impressive annual output of over four billion cigars, the company holds leading positions across various market segments, distributing its products to more than 100 countries globally.
Based in Copenhagen, Denmark, Scandinavian Tobacco Group employs about 10,000 people across different countries, including the U.S., Canada, and several nations in Latin America and Asia. This broad reach enhances the company’s ability to serve a diverse customer base, strengthening its market presence.
For any inquiries, stakeholders can reach out to Torben Sand, Head of IR & Communication at +45 5084 7222, or Eliza Dabbagh, IR and Communication at +45 5080 7619.
Frequently Asked Questions
What prompted Scandinavian Tobacco Group to initiate the share buy-back programme?
The company launched this buy-back programme to refine its capital structure and meet responsibilities related to its share-based incentive programme.
How many shares has Scandinavian Tobacco Group initiated buy-backs for?
As of the latest report, the company acquired a total of 95,636 shares between 09 September and 13 September 2024.
Who are the key stakeholders participating in the buy-back programme?
The transaction includes major stakeholders like Chr. Augustinus Fabrikker Aktieselskab and C.W. Obel A/S, who are involved based on pre-arranged pro-rata agreements.
What is the timeline for the share buy-back programme?
The programme is scheduled to conclude no later than 28 February 2025.
In what ways does the buy-back programme benefit shareholders?
This initiative is expected to enhance shareholder value by lowering the number of outstanding shares, which may lead to increased earnings per share and improved overall returns for shareholders.
