As previously announced in a press release on 26 September 2019, the Board of Directors of Arion Bank has authorized the management of the Bank to launch share buy-back programs in Iceland and Sweden (the Programs) to purchase own shares (including in the form of SDRs). The purpose of the Programs is to reduce the Bank’s share capital (in line with the Bank’s Dividend Policy).
The Programs will be managed by Kvika Bank hf. in Iceland and Nordea Bank Abp in Sweden and will both be launched on 31 October 2019. Kvika Bank hf. and Nordea Bank Abp will each be independent and make trading decisions independently and without influence by the Bank with regards to the timing of purchases The Programs shall end no later than 17 March 2020 but the CEO of the Bank is entitled to discontinue the Programs at any time.
The Bank may purchase up to 59,000,000 shares/SDRs in total under the Programs, corresponding to 3.25% of the current issued share capital. Up to 20,650,000 SDRs may be purchased in Sweden, corresponding to 1.14% of the current issued capital, and up to 38,350,000 shares in Iceland, corresponding to 2.11% of the current issued capital. The total consideration for purchased SDRs shall not exceed ISK 1,575,000,000 in Sweden and ISK 2,925,000,000 for purchased shares in Iceland (ISK 4.5 billion total). The Bank currently holds 299,899 of own shares.
The daily volume limit on each market will be 25% of the average daily trading volume of the Company’s SDRs or shares on Nasdaq Stockholm and Nasdaq Iceland for the 20 trading days preceding the date of the purchase. On Nasdaq Stockholm purchases may only be through orders within the band of prices applying on Nasdaq Stockholm where the range of prices pertains to the range between the highest purchase price (best bid) and the lowest selling price (best offer) prevailing and disseminated by Nasdaq Stockholm from time to time, in accordance with Chapter 4 of the Nasdaq Stockholm Rule Book for Issuers. On Nasdaq Iceland the purchase price shall not be higher than the price of the last independent trade or the highest current independent bid, whichever is higher, on Nasdaq Iceland in accordance with Icelandic regulation No. 630/2005. Transactions under the Program shall be publicly disclosed in accordance with applicable law and regulation in Iceland and Sweden respectively.
The Programs will be carried out in accordance with applicable law and regulation in Iceland and Sweden, including Regulation No. 596/2014 of the European Parliament and of the Council on market abuse (“MAR”), Commission delegated regulation (EU) 2016/1052 of 8 March 2016, Icelandic acts on limited liability companies, No. 2/1995 and on securities transactions, No. 108/2007, and Icelandic regulation on insider information and market manipulation, No. 630/2005.
For further information please contact Arion Bank’s Investor Relations at ir@arionbanki.is or Theodor Fridbertsson, Head of Investor Relations, +354 856 6760.
