Equinor to commence second tranche of the 2023 share buy-back programme
May 04 2023 - 12:48AM
Equinor (OSE: EQNR, NYSE: EQNR) will after the Annual
General Meeting 10 May 2023 commence the second tranche of the
share buy-back programme for 2023 of around USD 1.67 billion, as
announced in relation with the first quarter results on 4 May
2023.
Execution of share buy-back from May 2023 and until April 2024
is subject to renewal of an authorisation from the annual general
meeting 10 May 2023 to the Board of Directors.
The second tranche of the share buy-back programme for 2023 of
around USD 1.67 billion, including shares to be redeemed from the
Norwegian State, will end no later than 25 July 2023.
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 share of the Norwegian State’s shares of the
second tranche will be redeemed and annulled 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 will be structured into
tranches where Equinor will buy back shares for a certain value in
USD over a defined period. For the second tranche of 2023, Equinor
is entering into a non-discretionary agreement with a third party
who will make its trading decisions independently of the
company.
In this second tranche, shares for up to around USD 550 million
will be purchased in the market, implying a total second tranche of
around USD 1.67 billion, including shares to be redeemed from the
Norwegian State.
The execution of further tranches of the share buy-back
programme for 2023 will be notified to the market.
Further information about the share buy-back programme
and the second tranche:
The second tranche of the share buy-back programme for 2023 is
subject to an authorisation to the Board of Directors from the
annual general meeting 10 May 2023. According to proposed
authorization to the annual general meeting on 10 May 2023, the
maximum number of shares to be purchased in the market will be 94
000 000, the minimum price that can be paid per share is NOK 50,
and the maximum price is NOK 1 000. The authorisation proposed will
be valid until the earliest of 30 June 2024 and the annual general
meeting in 2024.
As further described in the notice to the annual general meeting
in 2023, an agreement between Equinor and the Norwegian State
regulates the State’s participation in the share buy-back: The
State will vote for the cancellation of shares purchased pursuant
to the authorisation, and the redemption 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 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 period up
until final settlement with the State.
In the second 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 February 2021.
The Board of Directors will propose to the annual general
meeting in 2024 to cancel purchased shares in this second tranche
and redeem the proportionate number of State shares. Any shares
purchased in subsequent tranches of the 2023 programme will follow
a similar process with cancellation and redemption at the annual
general meeting in 2024.
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
Media Sissel Rinde, vice president Media
Relations,+47 412 60 584
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