Spar Nord Discontinues Previous Share Buyback Initiative
In a recent announcement, Spar Nord has decided to halt its current share buyback program, originally projected to procure up to DKK 500 million. This announcement reflects the company’s responsiveness to changing market dynamics and strategic adjustments based on new developments.
Background of the Share Buyback Program
The share buyback program was initially outlined in an earlier communication, aiming for a completion date no later than January 2025. The objective was to enhance shareholders' value by repurchasing shares, thus reducing the number of shares available in the market.
Influencing Factors for Discontinuation
Recent developments related to a voluntary cash takeover offer by Nykredit for Spar Nord Bank have significantly influenced the Board’s decision. Given these new considerations, continuing the buyback program would not align with the company's best interests at this juncture.
Recent Transactions Under the Buyback Program
In the week leading up to the announcement, several transactions transpired under the buyback program:
Accumulated shares bought back from the last report amounted to 3,206,446 shares, culminating in a substantial transaction value of 408,459,537 DKK. The following specific purchases occurred:
- **2 December:** 16,200 shares purchased at an average price of 140.35 DKK totaling 2,273,670 DKK.
- **3 December:** 16,500 shares purchased at 141.34 DKK totaling 2,332,110 DKK.
- **4 December:** 16,900 shares purchased at 136.99 DKK totaling 2,315,131 DKK.
- **5 December:** 17,000 shares purchased at 138.46 DKK totaling 2,353,820 DKK.
- **6 December:** 17,200 shares purchased at 139.49 DKK totaling 2,399,228 DKK.
During week 49 alone, Spar Nord acquired a total of 83,800 shares, adding to an accumulated total of 3,290,246 shares, with an overall value of 420,133,526 DKK.
Current Holdings Overview
As of the latest updates, Spar Nord currently holds a total of 3,458,846 treasury shares, representing approximately 2.94% of the bank's share capital. This strategic decision reflects Spar Nord’s commitment to a sustainable capital structure amidst fluctuating market conditions.
Questions and Contact Information
For inquiries regarding this significant change in strategy, interested parties can reach out to Rune Brandt Børglum, the Chief Financial Officer, at +45 96 34 42 36.
Frequently Asked Questions
What is the reason behind Spar Nord's decision to discontinue the buyback program?
The decision is largely influenced by a recent all-cash takeover offer from Nykredit, prompting a reassessment of the company's financial strategies.
What were the total shares purchased during the recent buyback program?
During the week leading up to the discontinuation, a total of 83,800 shares were acquired amidst the ongoing buyback program.
How many shares does Spar Nord currently hold as treasury shares?
Spar Nord currently holds 3,458,846 treasury shares, accounting for about 2.94% of the bank's overall share capital.
When was the share buyback program originally set to conclude?
The program was scheduled to conclude no later than January 31, 2025, prior to the recent announcement of its discontinuation.
Who can I contact regarding this announcement?
For more information, individuals can contact Rune Brandt Børglum, Chief Financial Officer, directly.
