ABB Launches New Share Buyback Program
April 07 2021 - 11:46PM
Business Wire
ABB will launch on April 9, 2021 its previously announced
follow-up share buyback program of up to $4.3 billion. Based on the
current share price this represents a maximum of approximately 137
million shares. The maximum number of shares that may be
repurchased under this new program on any given trading day is
1,543,644.
This follow-up program is part of ABB’s plan to return $7.8
billion of cash proceeds from the Power Grids divestment to
shareholders and is consistent with the company’s capital structure
optimization program. As announced previously, under the initial
program ABB repurchased a total of 128,620,589 shares – equivalent
to 5.93 percent of its issued share capital at the launch of the
program – for a total amount of approximately $3.5 billion. ABB
shareholders approved the cancellation of 115 million of these
shares at ABB’s 2021 Annual General Meeting (AGM).
The total number of ABB’s issued shares is 2,168,148,264
including the shares approved for cancellation at ABB’s 2021 AGM.
ABB currently owns 143,988,616 treasury shares.
The follow-up share buyback program is for capital reduction
purposes and will be executed on a second trading line on the SIX
Swiss Exchange (Valor: 35.767.961; ISIN: CH035 767 961 9). It is
planned to run from April 9, 2021 until March 23, 2022. At the
company’s AGM on March 24, 2022, ABB intends to request shareholder
approval to cancel the shares purchased through this program as
well as those shares purchased under the initial program that were
not proposed for cancellation at ABB’s 2021 AGM.
The share buyback program will be managed by a bank mandated by
ABB that will make its trading decisions concerning the timing of
share repurchases independently of ABB, within pre-agreed
parameters. ABB can change these parameters outside of its closed
periods and if it is not in possession of any inside
information.
The purchase price per share will not exceed the higher of the
price of the last independent trade on the ordinary trading line on
the SIX Swiss Exchange and the highest current independent bid
price on the ordinary trading line on the SIX Swiss Exchange. In
addition, customary spreads on purchases on the second trading line
on the SIX Swiss Exchange will be paid, observing the limitations
of the Ordinance on Financial Market Infrastructures and Market
Conduct in Securities and Derivatives Trading (FMIO). Payment for
the shares will be made in cash.
The buyback program is being carried out in accordance with the
Ordinance on Financial Market Infrastructures and Market Conduct in
Securities and Derivatives Trading (FMIO), the Market Abuse
Regulation (EU) No 596/2014 and the Commission Delegated Regulation
(EU) No 2016/1052. Weekly updates on the program will be published
on ABB’s investor relations website at
https://global.abb/group/en/investors/investor-and-shareholder-resources
and issued by press release.
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/20210407006050/en/
ABB Ltd Affolternstrasse 44 8050 Zurich Switzerland
Media Relations Phone: +41 43 317 71 11 E-mail:
media.relations@ch.abb.com
Investor Relations Phone: +41 43 317 71 11 E-mail:
investor.relations@ch.abb.com