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Skeljungur hf.: Share buy-back program initiated

Skeljungur hf.
·2-min read

At Skeljungur hf.´s AGM, which was held on March 5, 2020, shareholders authorized the Board of Directors of the company to purchase shares in the company, on the condition that the company together with its subsidiaries shall only hold a maximum of 10% of the company´s shares.

The Board of Directors of Skeljungur hf. have in accordance with the existing AGM’s authorization and taking into account purchase of own shares in accordance with share buy-back program that ended April 21st 2020, decided to initiate again a share buy-back program. Skeljungur purchased on the grounds on former buy-back program total 24,820,946 shares in the company which corresponds to 1.25% of the issued share capital.

It is planned to buy up to 24,820,946 of the company´s own shares, which corresponds to 1.25% of the issued share capital, although the amount of the repurchases shall not exceed ISK 250.000.000. The main purpose of the program is to reduce the issued share capital of the company.

Purchases under the program shall be divided into numerous transactions, however the daily trade will not exceed 25% of the average daily volume of the shares traded in September 2020 on Nasdaq Iceland, which amounts to 1,577,736 shares. The purchase price for shares shall not be higher than the price of the last independent trade or the last independent bid in Nasdaq Iceland, whichever is higher.

Purchases under the program is expected to begin on October 9, 2020 and the program will remain in effect until the Company´s AGM 2021, unless the conditions for maximum purchases are met before that time.

Skeljungur hf. currently holds 24,820,946 of own shares, or 1.25% of the issued share capital in the company.

The buy-back program will be managed by Kvika banki hf. which will make its trading decisions regarding the purchases and the timing of the purchase, without influence by the company. The execution of the share buy-back program will be according to the provisions of Act respecting Public Limited Companies, no. 2/1995, and Appendix to Regulation on Insider Information and Market Manipulation no. 630/2005. Transactions with owns shares according to the buy-back program will be publicly disclosed no later than at the end of seventh business day following the day of execution of such transactions.

For further information please contact Ólafur Þór Jóhannesson, CFO