ABB share buyback program launched on July 23, 2020
Following the completion of the divestment of its Power Grids business to Hitachi on July 1, 2020, and consistent with its overall capital structure optimization program, ABB launched its previously announced share buyback program on July 23, 2020.
As part of its plan to return to shareholders net cash proceeds of $7.6–7.8 billion from the sale of Power Grids, ABB initially intends to buy 10 percent of its issued share capital through this share buyback program. ABB will purchase a maximum of 180 million shares, in addition to those already held in treasury. The corresponding maximum buyback amount of CHF 4.2 billion for this program, is based on ABB’s share price on July 21, 2020.
The share buyback program is for capital reduction purposes and is executed on a second trading line on the SIX Swiss Exchange. Regular trading of ABB shares continues as normal on the ordinary line.
The program is planned to run from July 23, 2020 until the company’s Annual General Meeting (AGM) on March 25, 2021. At the AGM, ABB intends to request shareholder approval to cancel the shares purchased through this program and to announce next steps.
The share buyback program is lead-managed by a bank mandated by ABB that makes its trading decisions concerning the timing of share repurchases independently of ABB, within pre-agreed parameters.
The buyback program is being carried out in accordance with the Market Abuse Regulation (EU) No 596/2014 (”MAR”) and the Commission Delegated Regulation (EU) No 2016/1052 (the “Safe Harbour Regulation”).
Official notices in German, French and English
Repurchases of ABB shares for capital reduction purposes are carried out on a second trading line on the SIX Swiss Exchange. Only ABB through its mandated bank can purchase shares on this second trading line (see official notices). The repurchase price of ABB shares traded on the second trading line is based on the prices of ABB shares on the ordinary trading line.
A shareholder wishing to sell ABB shares may do so either via the ordinary trading line or via the second trading line. ABB shares sold via the second trading line are subject to the Swiss federal withholding tax rate of 35 percent on the difference between the repurchase price of the ABB share and its nominal value of CHF 0.12. This tax will be deducted from the repurchase price. Shareholders domiciled in Switzerland are entitled to a reimbursement of the withholding tax provided they are beneficial owners of the shares at the time they are surrendered and they do not avoid taxes (art. 21 of the Withholding Tax Law). Shareholders domiciled outside Switzerland may reclaim the withholding tax in accordance with any applicable double taxation agreements.*
|ABB Ltd||Valor No||ISIN||Ticker|
|Ordinary trading line||1 222 171||CH 001 222171 6||ABBN|
|Second trading line||35 767 961||CH 035 767961 9||ABBNE|
2,188,145 shares (calculated in accordance with Art. 55b(1)(c) of the Swiss Federal Ordinance on Stock Exchange and Securities Trading).
*Tax disclaimer: All investors must seek their own specific tax advice, and nothing herein is intended or should be considered as tax advice.
** In the Appendix: SE stands for SIX Exchange. Transactions on July 23 and 24, 2020 were mistakenly reported as per BST instead of CEST.