Royal Unibrew's board initiates DKK400m share buy-back programme.
NORDIC BUSINESS REPORT-March 7, 2018-Royal Unibrew's board initiates DKK400m share buy-back programme
(C)2018 M2 COMMUNICATIONS http://www.m2.com
Royal Unibrew A/S (CPH:RBREW), a producer of beer, soft drinks, orange juice, and mineral water that distributes its products throughout Europe, announced on Tuesday the decision by its board of directors to initiate a share buy-back of up to DKK400m.
The company said the objective of this share buy-back programme is to adjust the capital structure of Royal Unibrew in accordance with the target of this. Also, the company's board expects to recommend to the AGM in 2019 that the shares bought back be cancelled.
According to the company, this share buy-back programme is initiated within the authorisation granted to the board of directors at the Annual General Meeting of the company on 27 April 2017, which will enable the company to buy back shares for up to 10%, recognising that the company's total holding of treasury shares following the acquisition cannot exceed 10% of the share capital.
This share buy-back programme is expected to be realised in the period from 7 March 2018 through 22 February 2019.
Under this buy back programme, the maximum total share buy-back in the period will represent a market value of DKK400m, Based on the share price at 6 March 2018, this will correspond to approximately 1.1 million shares of DKK2.00 each at a total nominal value of DKK2.2m, corresponding to approximately 2.0% of the share capital.
Also, Royal Unibrew has entered into an agreement with Nordea Denmark, branch of Nordea Bank AB, Sweden, for Nordea to handle the share buy-back as lead manager on behalf of the company. Nordea will make all trading decisions independently of and without involving Royal Unibrew.
In addition, the shares bought back on each trading day will not exceed 25% of the daily average trading volumes over the 20 trading days preceding the date of purchase. No shares will be bought back under the share buy-back programme at a price exceeding the higher of the two prices of the price of the latest independent transaction; and the highest independent bid on Nasdaq Copenhagen A/S.
Royal Unibrew added that it will be entitled to suspend the share buy-back programme in the event of material changes to the company's circumstances or in the market.
((Comments on this story may be sent to email@example.com))
|Printer friendly Cite/link Email Feedback|
|Publication:||Nordic Business Report|
|Date:||Mar 7, 2018|
|Previous Article:||Invuo Technologies' board resolves on directed share issue and sells Seamless Distribution Solutions' loans to AJ Group.|
|Next Article:||Endomines' board resolves on share issue to JKK and a convertible loan to seller of TVL Gold.|