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AABENRAA, Denmark - Sydbank A/S, one of Denmark’s largest banks, has announced a new share buyback program with the intention to purchase shares totaling DKK 1.35 billion, not to exceed 5.4 million shares. The program, which aims to reduce the bank’s share capital, is set to commence on Monday, March 3, 2025, and is expected to conclude by January 31, 2026.
This move follows the authorization granted at Sydbank’s general meeting on March 21, 2024, which allows the bank to acquire its own shares up to 10% of its share capital. The bank has specified that the price paid for the shares will not vary by more than 10% from their quoted price on Nasdaq Copenhagen at the time of purchase.
The buyback is designed to optimize Sydbank’s capital structure in line with its capital targets and policy. As of December 31, 2024, the bank reported a Common Equity Tier 1 (CET1) capital ratio of 17.8% and a total capital ratio of 21.7%.
Danske Bank (CSE:DANSKE) A/S has been selected to manage the buyback program, which will adhere to EU Market Abuse Regulation and the Safe Harbour rules. The guidelines for the program stipulate that no purchase may exceed the higher of the last independent trade price or the highest current independent bid. Additionally, purchases on any given day cannot surpass 25% of the average daily volume of the shares on the trading venue over the previous 20 trading days.
Sydbank will disclose the number and value of repurchased shares weekly, and reserves the right to suspend or terminate the buyback program at any time, with any such decision being communicated via a company announcement.
The announcement comes after the completion of Sydbank’s previous share buyback program on January 23, 2025, which began on March 4, 2024, and resulted in the acquisition of 3,383,960 shares. As of February 24, 2025, Sydbank holds approximately 6.2% of its own share capital.
The Board of Directors is recommending a reduction in the bank’s share capital at the upcoming Annual General Meeting scheduled for March 20, 2025. This information is based on a press release statement from Sydbank A/S.
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