UPM Begins a Share Buyback Program
The Board of Directors of UPM-Kymmene Corporation has made an important decision to initiate a repurchase of the company's own shares, commonly referred to as a share buyback program. This decision follows the authorization granted by the Annual General Meeting.
Understanding the Buyback Terms
The buyback program comes with clearly defined parameters:
Maximum Share Limits
UPM plans to repurchase up to 6,000,000 shares, which is about 1.1% of the company's total shares. The total expenditure earmarked for this initiative is set at EUR 160 million.
Method of Repurchase
Shares will be bought back through public trading on Nasdaq Helsinki, conducted at the market price at the time of purchase. This will occur irrespective of current shareholder proportions, utilizing the company’s non-restricted shareholders' equity.
Significance of the Buyback
This strategic move is intended to enhance UPM's capital structure by effectively reducing its capital. By optimizing their financial foundation, UPM aims to position itself better for future growth.
Timeline of the Buyback Program
The buyback activities are scheduled to commence shortly, potentially starting on a date that falls within early February and concluding no later than the end of May. Following the completion of the program, all repurchased shares will be canceled, further tightening the available share pool and potentially increasing the value of remaining shares.
Compliance and Management
UPM is committed to adhering to the safe harbor regulations specified in Article 5 of the EU Market Abuse Regulation. To ensure compliance and effective execution, the company has appointed a third-party broker who will manage the trading process independently.
About UPM-Kymmene Corporation
UPM is a leading provider of renewable and responsible solutions across various industries. The company focuses on innovative solutions for a sustainable future beyond fossil reliance, split across six primary business segments including UPM Fibres and UPM Communication Papers. With approximately 15,800 employees globally, UPM reported annual sales of around EUR 10.3 billion.
Connect with UPM
To learn more and stay updated with the latest developments, UPM invites everyone to connect through their social media platforms. Follow them on various channels to engage and understand more about UPM’s sustainable initiatives and innovations.
Frequently Asked Questions
What is the purpose of UPM's share buyback program?
The program aims to optimize UPM's capital structure and increase shareholder value through strategic repurchases of its own shares.
How many shares does UPM plan to repurchase?
UPM plans to repurchase up to 6,000,000 shares, which represents approximately 1.1% of the total shares.
When will the share buyback program commence?
The buyback is expected to start in early February and conclude by the end of May.
What will happen to the shares repurchased by UPM?
All shares bought back will be canceled after the program concludes, which will reduce the total number of shares available in the market.
Who is managing the buyback program?
A third-party broker has been appointed to manage the trading independently and ensure compliance with market regulations.
