Maersk Launches Second USD 1bn Share Buy-Back

first_imgzoom The board of directors of Denmark’s shipping and oil giant A.P. Møller – Mærsk A/S has decided to initiate the second share buy-back program of up to DKK 6.7 billion (approximately USD 1 billion) to be executed during a 12 months period.The share buy-back program is initiated pursuant to the authorisation granted to the board of directors by the annual general meeting in 2015, which authorizes the company to acquire treasury shares at a nominal value not exceeding 10% of the share capital at the market price applicable at the time of acquisition with a deviation of up to 10%.The purpose of the share buy-back program is to adjust the capital structure of the company. At the company’s annual general meeting in 2016, a resolution will be proposed that shares acquired be cancelled.The share buy-back will be carried out in a number of phases, with the first phase running from September 1, 2015 to November 30, 2015.A.P. Møller Holding A/S has agreed to participate in the share buy-back program by selling A and B shares pro rata to its ownership on a daily basis at the volume weighted average price paid in open market purchases of A and B shares.The company will appoint a bank to act as lead manager, which will execute the purchase of shares on behalf of the company and will make all share purchase decisions independently and without the involvement of the company.Shares at A.P. Møller – Mærsk jumped by 8.6 percent today, following the company’s announcement of its second-quarter profit which beat forecasts, and the USD 1 bn share buy-back program.last_img read more