ABB Plans to Launch New Share Buyback Following Completion of Initial Program
March 25 2021 - 12:12PM
Dow Jones News
ABB has completed its initial share buyback program that was
launched in July 2020 as part of the company's commitment to return
to shareholders cash proceeds from the Power Grids divestment of
$7.6-7.8 billion. Through the initial buyback program, ABB
repurchased a total of 128,620,589 shares -- equivalent to 5.93
percent of its issued share capital at launch of the buyback
program -- for a total amount of approximately $3.5 billion over
the past 8 months.
At today's Annual General Meeting (AGM), as separately
announced, ABB shareholders approved the cancellation of 115
million shares purchased under the initial share buyback
program.
Consistent with ABB's capital structure optimization program,
ABB's Board of Directors today approved a further share buyback
program of up to $4.3 billion. With today's decision, the Board
confirms ABB's intention to return $7.8 billion of cash proceeds
from the Power Grids divestment to shareholders through share
buybacks. The program is expected to be launched in April 2021. It
will be executed on a second trading line on the SIX Swiss Exchange
and is planned to run until the company's 2022 AGM.
ABB intends to request shareholders to approve the cancellation
of the remaining shares purchased under the initial program as well
as those purchased under this new program at its 2022 AGM.
In addition, ABB intends to purchase up to 35 million shares
until the 2022 AGM mainly for use in connection with its employee
share plans.
ABB currently owns approximately 163 million treasury shares
including the 115 million shares approved for cancellation at
today's AGM.
ABB (ABBN: SIX Swiss Ex) is a leading global technology company
that energizes the transformation of society and industry to
achieve a more productive, sustainable future. By connecting
software to its electrification, robotics, automation and motion
portfolio, ABB pushes the boundaries of technology to drive
performance to new levels. With a history of excellence stretching
back more than 130 years, ABB's success is driven by about 105,000
talented employees in over 100 countries. www.abb.com
Important notice about forward-looking information
This press release includes forward-looking information and
statements concerning the share buyback program. These statements
are based on current expectations, estimates and projections about
the factors that may affect our future performance, and are
generally identifiable by statements containing words such as
"intends", "expects," "plans", or similar expressions. However,
there are many risks and uncertainties, many of which are beyond
our control, that could affect our ability to achieve any or all of
our stated targets. Factors that could cause such differences
include, among others, business risks associated with the volatile
global economic environment and political conditions, changes in
governmental regulations and currency exchange rates and such other
factors as may be discussed from time to time in ABB Ltd's filings
with the U.S. Securities and Exchange Commission, including its
Annual Reports on Form 20-F. Although ABB Ltd believes that its
expectations reflected in any such forward-looking statement are
based upon reasonable assumptions, it can give no assurance that
those expectations will be achieved.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20210325005714/en/
CONTACT:
For more information please contact:
Media Relations
Phone: +41 43 317 71 11
Email: media.relations@ch.abb.com
Investor Relations
Phone: +41 43 317 71 11
Email: investor.relations@ch.abb.com
ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
SOURCE: ABB
Copyright Business Wire 2021
(END) Dow Jones Newswires
March 25, 2021 12:57 ET (16:57 GMT)
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