UPM-Kymmene Launches Strategic Share Buy-Back Program to Enhance Capital Structure
UPM-Kymmene Corporation has recently declared the commencement of a noteworthy share buy-back program, marking a significant strategic move endorsed by the Board of Directors on February 5, 2025. This initiative follows the authorization granted during the company's Annual General Meeting in April 2024. The program allows for the acquisition of up to 6,000,000 shares, which equates to approximately 1.1% of the total shares outstanding. Furthermore, it is important to note that the monetary cap for this initiative is set at a substantial EUR 160 million.
The shares will be procured through public trading on Nasdaq Helsinki, and will not follow the current ownership proportions of UPM's shareholders. The shares will be bought at the prevailing market price during the purchase period, utilizing the company's non-restricted shareholders' equity.
The primary objective of this buy-back strategy is to optimize UPM's capital structure by reducing its overall capital. The program is scheduled to begin no earlier than February 10, 2025, and must conclude by May 31, 2025, at the latest. Once the program draws to a close, all repurchased shares will be nullified, further enhancing the company's financial standing.
In compliance with regulatory standards, these repurchase activities will adhere to safe harbor rules, as outlined in Article 5 of the EU Market Abuse Regulation (EU No 596/2014). For executing the buy-back program, UPM has selected a third-party broker, which will operate independently of UPM's influence in making trading decisions.
UPM's commitment to responsible practices extends beyond this program, as the corporation emphasizes innovation for a sustainable future through its various business sectors. UPM operates across six diverse areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, and UPM Plywood, reaffirming its status as a leader in responsibility and sustainability.
UPM's approach aligns with the UN Business Ambition for 1.5°C, as well as science-based targets aimed at countering climate change. With a workforce comprising around 15,800 individuals globally and an annual sales figure reaching approximately EUR 10.3 billion, UPM's stake on the Nasdaq Helsinki Ltd. is significant in the Finnish and European market context.
For those interested in UPM's progress and further news regarding the buy-back program, more details can be accessed through various platforms including X, LinkedIn, Facebook, YouTube, Instagram, and the company’s official website. UPM continues to uphold its philosophy with the tagline "Biofore - Beyond fossils," reflecting its commitment towards innovative and renewable solutions for sustainable growth.
In summary, UPM-Kymmene's buy-back initiative is not merely a financial maneuver but a part of a broader strategy to reinforce its capital framework while demonstrating a commitment to responsible corporate practices. Stakeholders and market observers alike will be watching closely as this program unfolds over the coming months.
The shares will be procured through public trading on Nasdaq Helsinki, and will not follow the current ownership proportions of UPM's shareholders. The shares will be bought at the prevailing market price during the purchase period, utilizing the company's non-restricted shareholders' equity.
The primary objective of this buy-back strategy is to optimize UPM's capital structure by reducing its overall capital. The program is scheduled to begin no earlier than February 10, 2025, and must conclude by May 31, 2025, at the latest. Once the program draws to a close, all repurchased shares will be nullified, further enhancing the company's financial standing.
In compliance with regulatory standards, these repurchase activities will adhere to safe harbor rules, as outlined in Article 5 of the EU Market Abuse Regulation (EU No 596/2014). For executing the buy-back program, UPM has selected a third-party broker, which will operate independently of UPM's influence in making trading decisions.
UPM's commitment to responsible practices extends beyond this program, as the corporation emphasizes innovation for a sustainable future through its various business sectors. UPM operates across six diverse areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers, and UPM Plywood, reaffirming its status as a leader in responsibility and sustainability.
UPM's approach aligns with the UN Business Ambition for 1.5°C, as well as science-based targets aimed at countering climate change. With a workforce comprising around 15,800 individuals globally and an annual sales figure reaching approximately EUR 10.3 billion, UPM's stake on the Nasdaq Helsinki Ltd. is significant in the Finnish and European market context.
For those interested in UPM's progress and further news regarding the buy-back program, more details can be accessed through various platforms including X, LinkedIn, Facebook, YouTube, Instagram, and the company’s official website. UPM continues to uphold its philosophy with the tagline "Biofore - Beyond fossils," reflecting its commitment towards innovative and renewable solutions for sustainable growth.
In summary, UPM-Kymmene's buy-back initiative is not merely a financial maneuver but a part of a broader strategy to reinforce its capital framework while demonstrating a commitment to responsible corporate practices. Stakeholders and market observers alike will be watching closely as this program unfolds over the coming months.
Topics Financial Services & Investing）
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