SSAB Launches SEK 2.5 Billion (EUR 212.5 Million) Share Buyback Program to Optimize Capital Structure

SSAB Launches SEK 2.5 Billion (EUR 212.5 Million) Share Buyback Program to Optimize Capital Structure

(IN BRIEF) The Board of Directors of SSAB AB (publ) has decided to initiate a share buyback program with a maximum amount of SEK 2.5 billion (~EUR 212.5 Million). The program aims to optimize the company’s capital structure to enhance shareholder value. SSAB’s President and CEO, Martin Lindqvist, highlighted the company’s strong cash flows and solid balance sheet, providing flexibility for such a program.

(PRESS RELEASE) STOCKHOLM, 26-Oct-2023 — /EuropaWire/ — The Board of Directors of SSAB AB (publ) (the “Company”) has, based on the authorization granted by the Annual General Meeting held on 18 April 2023, resolved to implement a buyback program for a total maximum amount of SEK 2.5 billion.

The purpose of the program is to adjust the Company’s capital structure so as to create greater value for the Company’s shareholders. The Board of Directors intends to propose to the Annual General Meeting 2024 that it resolves to reduce the share capital by cancellation of the shares acquired by the Company.

”SSAB has generated and continues to generate strong cash flows. Our strategic focus on premium products and high-strength steels has made SSAB more resilient over the business cycle. The balance sheet is very solid, which provides a favorable position ahead of the transformation to fossil free steel. At the same time, we aim for an efficient capital structure”, commented SSABs President and CEO, Martin Lindqvist.

At end of Q3 SSAB had a net cash position of SEK 16.780 million corresponding to a net gearing of 24 %, above our financial target of a net gearing ratio between -20 to 20 %. The Board has therefore, after considering the capital needs for the coming years based on outlook, capex plans and other considerations, decided to buy back shares for a maximum of SEK 2.5 billion.

Acquisitions of own shares will be made in accordance with Nasdaq Stockholm’s Nordic Main Market Rulebook for Issuers of Shares (the “Rulebook”), the Market Abuse Regulation (EU) No 596/2014 (“MAR”) and the European Commission Delegated Regulation (EU) No 2016/1052 (the “Safe Harbour Regulation”). The acquisitions of shares shall be managed by an investment firm or credit institution that makes its own trading decisions regarding timing of the acquisitions of shares independently of the Company.

The following conditions apply to the buyback program:

1. Acquisition of own shares shall be made at a total maximum amount of SEK 2.5 billion. The allocation of the amount between the series A and the series B shares will reflect the current trading volume of the two share classes, entailing that 25 per cent of the amount (i.e. up to SEK 625 million) will be allocated to the purchase of series A shares and 75 per cent of the amount (i.e. up to SEK 1,875 million) to the purchase of series B shares.
2. Acquisitions may be made of such amount of shares that the Company’s holding at any time does not exceed 10 per cent of the total number of shares in the Company. The total number of outstanding shares in the Company is 1,029,835,326, of which 304,183,270 are shares of series A and 725,652,056 are shares of series B. The Company currently holds no own shares in treasury which means that a maximum of 102,983,532 shares may be acquired. Not more than 30,418,327 shares of series A and not more than 72,565,205 shares of series B may be acquired.
3. Acquisitions of own shares may be effected on Nasdaq Stockholm in accordance with the Rulebook, MAR and the Safe Harbour Regulation.
4. Acquisitions shall commence on 26 October 2023 at the earliest, and shall end not earlier than 2 February 2024 and not later than 11 March 2024.
5. Acquisitions shall be effected in accordance with the restrictions regarding volume for acquisitions of own shares stated in the Rulebook and in the Safe Harbour Regulation. Acquisitions may only be effected at a price within the registered price interval on Nasdaq Stockholm at any given time, i.e. the range between the highest purchase price and the lowest selling price disseminated by Nasdaq Stockholm from time to time, and in addition, the price restrictions in the Safe Harbour Regulation shall be observed.
6. Payment of acquired shares shall be made in cash.

This information is inside information that SSAB AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 25 October 2023 at 07.35 CEST.

Media Contact:

Per Hillström
Head of Investor Relations
per.hillstrom@ssab.com
phone: +46 702 95 29 12

Viktoria Karsberg
Head of Corporate Identity and Group Communications
viktoria.karsberg@ssab.com
phone: +46 72 233 5288

SOURCE: SSAB