Equinor to commence fourth and final tranche of the 2023 share buy-back programme
October 27 2023 - 12:48AM
Equinor (OSE: EQNR, NYSE: EQNR) will on 30 October 2023
commence the fourth tranche of the share buy-back programme for
2023 of up to USD 1.67 billion, as announced in relation with the
third quarter results on 27 October 2023. The fourth tranche will
end no later than 29 January 2024.
The purpose of the share buy-back programme is to reduce the
issued share capital of the company. All shares repurchased as part
of the programme will hence be cancelled.
According to an agreement between Equinor and the Norwegian
State, a proportionate number of the Norwegian State’s shares shall
be redeemed and cancelled at the annual general meeting in 2024,
ensuring that the State’s ownership interest in Equinor remains
unchanged at 67%.
The share buy-back programme for 2023 is structured into
tranches where Equinor will buy back shares for a certain value in
USD over a defined period. For the fourth tranche of 2023, Equinor
is entering into a non-discretionary agreement with an independent
third party who will execute repurchases of shares and make its
trading decisions independently of the company.
In this fourth tranche, shares for up to USD 550 million will be
purchased in the market, implying a total fourth tranche of up to
USD 1.67 billion, including shares to be redeemed from the
Norwegian State.
This fourth and final tranche will complete Equinor’s announced
share buy-back programme of USD 6 billion for 2023.
Further information about the share buy-back programme
and the fourth tranche:
The fourth tranche of the share buy-back programme for 2023 is
based on an authorisation granted to the Board of Directors at the
annual general meeting 10 May 2023. According to the authorisation,
the maximum number of shares which can be purchased in the market
is 94,000,000 of which 57,290,207 remain available per commencement
of the fourth tranche (taken into account buy-backs made under
previous tranches). The minimum price that can be paid per share
pursuant to the authorisation is NOK 50 and the maximum price is
NOK 1,000. The authorisation is valid until the earliest of 30 June
2024 and the annual general meeting in 2024.
An agreement between Equinor and the Norwegian State regulates
the State’s participation in the share buy-back: At the annual
general meeting in 2024, the State will, as per proposal by the
Board of Directors, vote for the cancellation of shares purchased
in the market pursuant to the board authorisation, and the
redemption and cancellation of a proportionate number of its shares
in order to maintain its ownership share in the company. The price
to be paid to the State for redemption of the State’s shares shall
be the volume-weighted average of the price paid by Equinor for
shares purchased in the market plus an interest rate compensation,
adjusted for any dividends paid.
In the fourth tranche in 2023, shares will be purchased on the
Oslo Stock Exchange and possibly other trading venues within the
EEA. Transactions will be conducted in accordance with applicable
safe harbour conditions, and as further set out i.a. in the
Norwegian Securities Trading Act of 2007, EU Commission Regulation
(EC) No 2016/1052 and the Oslo Stock Exchange's Guidelines for
buy-back programmes and price stabilization from February 2021.
Based on the above and similar to the second and third tranche
of Equinor’s share buy-back programme, the Board of Directors will
propose to the annual general meeting in 2024 to cancel shares
purchased in this fourth tranche and redeem a proportionate number
of the State’s shares.
This is information that Equinor is obliged to make public
pursuant to the EU Market Abuse Regulation and subject to the
disclosure requirements pursuant to Section 5-12 the Norwegian
Securities Trading Act.
Further information from:
Investor relationsBård Glad Pedersen, senior
vice president Investor Relations,+ 47 918 01 791
MediaSissel Rinde, vice president Media
Relations,+47 412 60 584
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