Kesko Corporation begins the acquisition of own shares and transfers own shares held by the Company as treasury shares
The Board of Directors of Kesko Corporation has decided to use the authorisation granted by the General Meeting held on 11 April 2018 to acquire the Company’s own B shares. The shares will be acquired to fulfil obligations related to the Company’s share-based commitment and incentive plans. The Board has also decided to implement the resolution made by the General Meeting on 11 April 2018 to pay approximately 30% of the annual remuneration for members of the Board in B series shares in the Company, by using B series shares held by the Company as treasury shares in the payment of the share portion of the remuneration.
In its meeting on 24 April 2018, the Board of Directors of Kesko Corporation decided to use the authorisation granted by the General Meeting held on 11 April 2018 to acquire the Company’s own B shares. Based on the authorisation granted by the General Meeting, the Board has decided to initiate a fixed-term share buy-back programme for the purpose of acquiring the Company’s own shares in order to implement the commitment and incentive plan for the Company’s management and other members of personnel. The share acquisitions will begin at the earliest on 26 April 2018 and they will end at the latest on 31 July 2018. The maximum number of shares to be acquired is 500,000, which represents approximately 0.5 per cent of all shares in Kesko Corporation and 0.7 per cent of Kesko Corporation’s series B shares.
The maximum sum to be used for share acquisitions under the buy-back programme is €25 million, with a maximum price per share of €50.00. The number of shares to be acquired cannot be more than 20% or less than 10% of the average daily trading volume of Kesko Corporation’s B shares. The average daily volume is based on the average daily volume of the 20 trading days preceding each trading day. The shares will be acquired with the Company's distributable unrestricted equity, not in proportion to the shareholdings of shareholders. The shares will be acquired at the market price quoted in trading organised by Nasdaq Helsinki Ltd on a regulated market at the time of acquisition.
The Board of Kesko Corporation has also decided to implement the resolution made by the General Meeting on 11 April 2018 to pay a portion of the annual remuneration of Board members in B shares in the Company, by using the valid authorisation granted by the General Meeting of 4 April 2016 to transfer own B shares held by the Company as treasury shares to the members of the Board. The total number of shares to be transferred is 2,759 B shares which, in line with the resolution of the General Meeting, corresponds to approximately 30% of the annual remuneration of each Board member calculated on the closing price of the date of the Board’s meeting, 24 April 2018. The transfer of the shares is to be implemented by 31 May 2018 at the latest. A Board member cannot transfer shares obtained in this manner until either three years have passed from the day the member has received the shares or their membership on the Board has ended, whichever comes first.
The resolutions of the General Meeting were communicated in a stock exchange release on 11 April 2018.
Further information is available from Mika Majoinen, EVP, Group General Counsel, tel. +358 105 322 206.
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