Schouw & Co. Launches Share Buy-Back Program
Aktieselskabet Schouw & Co. has officially announced its plans to initiate a share buy-back program with a total value of up to DKK 50 million. This strategic move is designed to enhance shareholder value and is set to be executed between 2 January and 31 March of the upcoming year, effectively replacing the previous buy-back initiative that was scheduled to conclude at the end of December next year.
Details of the Buy-Back Program
The decision to proceed with the buy-back program stems from the authorization given to the Board of Directors during the annual general meeting held on 15 April 2020. This authorization allows the company to buy back treasury shares equivalent to a nominal value of 20% of the total share capital. Even though this authorization is set to expire on 1 April 2025, it can be renewed during the company's next annual general meeting planned for 10 April 2025.
As of 20 December, Schouw & Co. possessed 1,967,213 treasury shares, which represent 7.87% of the company’s share capital. Under the new compliance framework, the maximum limit for share acquisition stands at 3,032,787 shares, or 12.13% of the total share capital. This buy-back scheme has been outlined in strict adherence to the European Regulation (EU) No. 596/2014 concerning market abuses, alongside the Commission's delegated regulation (EU) 2016/1052, which falls under the “Safe Harbour” provisions.
Driving Purpose Behind the Initiative
The primary aim of this share buy-back program is to strategically reduce the overall share capital of Schouw & Co. This move is expected to offer a more favorable balance sheet and improve the per-share metrics, which can ultimately benefit shareholders in the long run.
Execution and Management of the Program
In terms of execution, Schouw & Co. has engaged Danske Bank as the lead manager for the newly established share buy-back program. Under this arrangement, Danske Bank will undertake trading decisions autonomously, ensuring that the operations remain independent of any influence from Schouw & Co. This level of independence is a key factor in maintaining market integrity throughout the buy-back duration.
The scope of the buy-back program allows Schouw & Co. to purchase treasury shares amounting to a maximum of DKK 50 million. It’s important to note that the company reserves the right to pause or terminate the program at any given time, provided that such changes are promptly communicated through a formal company announcement. Furthermore, Schouw & Co. pledges to issue announcements on a weekly basis regarding the transactions facilitated under this effort.
About Schouw & Co.
With a longstanding commitment to delivering shareholder value, Aktieselskabet Schouw & Co. continues to explore avenues that enhance its market position. The leadership team, including Chairman Jørgen Dencker Wisborg and President Jens Bjerg Sørensen, is guiding this initiative with a view towards fostering a robust financial trajectory.
For further inquiries, you may reach out to Jens Bjerg Sørensen at +45 86 11 22 22.
Frequently Asked Questions
What is the total amount for the new buy-back program?
The new buy-back program is valued at up to DKK 50 million.
Who is managing the buy-back program?
Danske Bank has been appointed as the lead manager for the buy-back initiative.
How many treasury shares does Schouw & Co. currently hold?
As of the latest report, Schouw & Co. holds 1,967,213 treasury shares.
What is the purpose of the buy-back program?
The purpose is to reduce the company's share capital and enhance shareholder value.
When did the previous buy-back program expire?
The prior share buy-back program was set to expire on 31 December 2024.
