ABB to Launch Share Buyback Program
July 22 2020 - 01:22AM
Dow Jones News
Following the completion of the divestment of its Power Grids
business to Hitachi on July 1, 2020, and consistent with its
overall capital structure optimization program, ABB will launch its
previously announced share buyback program on July 23, 2020.
As part of its plan to return to shareholders net cash proceeds
of $7.6--7.8 billion from the sale of Power Grids ABB initially
intends to buy 10 percent(1) of its issued share capital through
this share buyback program. ABB will purchase a maximum of 180
million shares, in addition to those already held in treasury. The
corresponding maximum buyback amount of CHF 4.2 billion for this
program is based on ABB's share price on July 21, 2020. The maximum
number of shares that may be repurchased under the program on any
given trading day is 2,188,145.
The total number of ABB's outstanding shares currently amounts
to 2,134,574,661. ABB currently holds 33,573,603 own shares in
treasury.
The 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: CH0357679619).
The program is planned to run from July 23, 2020 until the
company's Annual General Meeting (AGM) on March 25, 2021. At the
AGM, ABB intends to request shareholder approval to cancel the
shares purchased through this program and to announce next
steps.
The share buyback program will be lead-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 no inside information exists within ABB, if
necessary.
The purchase price per share will not exceed the last
independent closing price on the ordinary trading line on the SIX
Swiss Exchange or the current best independent bid price on the
ordinary trading line on the SIX Swiss Exchange, provided this is
below the last independent closing price. In addition, customary
spread 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
Market Abuse Regulation (EU) No 596/2014 ("MAR") and the Commission
Delegated Regulation (EU) No 2016/1052 (the "Safe Harbour
Regulation"). 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 110,000
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, costs
associated with compliance activities, market acceptance of new
products and services, 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.
(1) Maximum 10 percent of the company's issued share capital,
including treasury shares
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200721005995/en/
CONTACT: ABB Ltd
Affolternstrasse 44
8050 Zurich
Switzerland
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
SOURCE: ABB
Copyright Business Wire 2020
(END) Dow Jones Newswires
July 22, 2020 01:07 ET (05:07 GMT)
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