Insider information: Outokumpu launches a share buyback program of a maximum of 11 million shares
Outokumpu Oyj
Insider information
November 29, 2023 at 10.00 pm EET
Insider information: Outokumpu launches a share buyback program of a maximum of 11 million shares
Outokumpu’s Board of Directors has approved a share buyback program of up to EUR 50 million under the authorization of the Annual General Meeting. The maximum number of shares to be repurchased under the program is 11 million, representing approximately 2.4% of the company’s total number of shares. The program will commence at the earliest on December 1, 2023, and end no later than on March 21, 2024.
Through the share buyback program, Outokumpu seeks to mitigate and manage the dilutive impact of the company’s outstanding convertible bonds. The repurchased shares will be initially held by Outokumpu as treasury shares and may be used to meet its obligations under the convertible bonds. Alternatively, Outokumpu may decide to cancel any or all of the repurchased shares and reduce its capital accordingly. The share repurchases will be funded by using funds from the unrestricted equity. Prior to the announcement, Outokumpu held 23,041,290 treasury shares, representing approximately 5.0% of the company’s total number of shares.
The repurchase of shares in public trading will be executed in accordance with Regulation No. 596/2014 of the European Parliament and Council of 16 April 2014 (MAR) and the Commission Delegated Regulation (EU) 2016/1052 (which together constitute the Safe Harbor rules), including but not limited to daily price and volume limits, on the Official List of Nasdaq Helsinki Ltd and select multilateral trading facilities (MTF). The price payable per share shall be determined in public trading on the relevant trading venue at the time of the repurchase, in compliance with the price and volume limits applicable under the Safe Harbor rules.
Outokumpu has appointed a third-party broker to execute the share buyback program that, based on irrevocable instructions, will decide on the repurchase of shares in full independence, also in relation to the timing of the transactions, and in compliance with applicable price and volume limits as well as applicable terms. The share buyback program is expected to be carried out in full and have a maximum EUR 50 million impact on net debt during the duration of the program. However, the company has the option to terminate the program during the buyback period and will, in such case, issue a stock exchange release to this effect.
The Annual General Meeting, held on March 30, 2023, authorized the Board of Directors to resolve to repurchase a maximum of 45,000,000 of Outokumpu’s own shares, representing approximately 9.8% of Outokumpu’s total number of shares.
For more information:
Investors: Linda Häkkilä, Head of Investor Relations, tel. +358 400 719 669
Media: Päivi Allenius, VP – Communications, tel. +358 40 753 7374
Outokumpu media desk, tel. +358 40 351 9840
Outokumpu is the global leader in stainless steel. The foundation of our business is our ability to tailor stainless steel into any form and for almost any purpose. Stainless steel is sustainable, durable and designed to last forever. Our customers use it to create civilization’s basic structures and its most famous landmarks as well as products for households and various industries. Outokumpu employs approximately 8,500 professionals in close to 30 countries, with headquarters in Helsinki, Finland and shares listed in Nasdaq Helsinki. www.outokumpu.com