Össur, Reykjavik, Iceland, announced it will initiate a share buyback program on NASDAQ Copenhagen that will be carried out in accordance with the provisions of the European Commission’s Safe Harbor regulation. The purpose of the share buyback is to reduce the company’s share capital and adjust the capital structure by distributing capital to shareholders in line with the company’s capital structure and dividend policy. Össur may purchase up to 5,000,000 shares under the program, corresponding to 1.1 percent of the current share capital. The total consideration for shares purchased under the program shall not exceed US $10 million (about DKK 70 million in local currency). The daily purchase shall not exceed 25 percent of the average volume in the 20 trading days before the purchase. The purchase price shall not be higher than the price of the last independent trade or the highest current independent bid, whichever is higher.
The program will be managed by Nordea Bank, headquartered in Stockholm, Sweden, which shall make its trading decisions independently and without influence by Össur with regard to the timing of the purchases. The program will end no later than December 1, 2016, but the company is entitled to discontinue the program at any time.
Össur also reserves the right to buy back shares in block trades outside the Safe Harbor program with the aim to maintain net interest bearing debt at US $50-140 million. Such transactions will only be made in open windows (i.e., within six weeks from the publication of the company’s financial results, and when no insider information is available). Such transactions will be announced immediately after they have been carried out.
According to an authorization granted by the Annual General Meeting in March 2015, Össur is allowed to purchase its own shares of up to 10 percent of the company’s share capital as it stands each time. The authorization is valid until March 12, 2020.
Össur’s market making agreement with SEB Enskilda Equities, Stockholm, will be suspended with effect from January 1, 2016, until the completion of the Safe Harbor program. During that period, the company will not have a market maker for Össur shares on NASDAQ Copenhagen.
Össur previously purchased 2,465,000 of its own shares at a price of about US $8 million in November.