ZURICH, Switzerland — On April 1, 2024, 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 21.3 million shares. The maximum number of shares that may be repurchased under this new program on any given trading day is 692,486.
This new program is consistent with ABB’s capital allocation principles targeting to maintain a strong investment grade rating. Since July 2020, ABB has repurchased about 308 million shares for capital reduction purposes for a total amount of approximately $9.4 billion.
The total number of ABB’s issued shares is 1,882,002,575. This includes 21,387,687 shares that were repurchased under the 2023–2024 share buyback program and are expected to be cancelled in Q2 2024. ABB will use the capital band approved at its Annual General Meeting 2023 for cancellation of these shares. ABB currently owns approximately 30 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 (Valor: 35.767.961; ISIN: CH035 767 961 9). It is planned to run from April 2, 2024, until January 31, 2025, following a decision to adjust the timing of its share buyback cycle to align with the announcement of its Q4 2024 results and 2024 dividend proposal.
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. 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/share-buybacks and issued by press release.
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