On April, 2023, ABB will launch its previously announced new share buyback program of up to $1 billion. Based on the current ABB share price this represents a maximum of approximately 30 million shares. The maximum number of shares that may be repurchased under this new program on any given trading day is 762,196.
This new program is consistent with ABB’s capital allocation principles and its capital structure optimization program targeting to maintain a strong investment grade rating. Since July 2020, ABB has repurchased about 286 million shares for capital reduction purposes for a total amount of approximately $8.6 billion.
The total number of ABB’s issued shares is 1,964,745,075. This includes 82,742,500 shares that were repurchased under the share buyback programs 2021/22 and 2022/23 and remain to be cancelled. ABB will use the new capital band approved at its Annual General Meeting 2023 for cancellation of these shares. ABB currently owns approximately 103 million treasury shares.
The new share buyback program is for capital reduction purposes and will be executed on a second trading line on the SIX Swiss Exchange. It is planned to run from April 3, 2023, until March 20, 2024. ABB intends to cancel the shares repurchased under the new program using the newly introduced capital band in due course.
The new share buyback program will be managed by a bank mandated by ABB that, based on trading parameters received from ABB, will make its trading decisions concerning the timing of share repurchases independently of ABB. ABB can change these parameters outside of its closed periods and if it is not in possession of any inside information.
The purchase price per share will not exceed the higher of the price of the last independent trade on the ordinary trading line on the SIX Swiss Exchange and the highest current independent bid price on the ordinary trading line on the SIX Swiss Exchange. In addition, customary spreads 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 Ordinance on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading (FMIO), the Market Abuse Regulation (EU) No 596/2014 and the Commission Delegated Regulation (EU) No 2016/1052.