Sinch AB's Board Approves Major Share Buyback Strategy to Boost Shareholder Value

Sinch AB Announces Share Repurchase Initiative



In a strategic move to bolster shareholder value, the Board of Directors of Sinch AB (publ) has authorized a significant share buyback initiative. This decision follows the authorization granted during the company’s Annual General Meeting (AGM) held on May 22, 2025. The Board is empowered to repurchase shares corresponding to up to ten percent of the company's total shares. As of the AGM, this translates to a maximum of 84,493,596 shares that Sinch is prepared to buy back.

Purpose of Share Buyback



The primary objective behind this buyback program is to fine-tune the company’s capital structure and enhance shareholder value. Sinch has made it clear that such measures are aimed at reflecting its strong financial position and commitment to delivering value to its investors. According to the company's latest records, Sinch currently has 844,935,967 shares issued, with an existing holding of 0 shares prior to the commencement of this buyback.

Timeline and Execution of the Buyback



The share repurchases are set to commence on July 23, 2025, and will continue until the AGM in 2026. All acquisitions will be executed on Nasdaq Stockholm, and details of the trades will be communicated in adherence to Nasdaq's Rulebook for Issuers, ensuring transparency throughout the process. It is essential to note that the buyback will only occur at prices within the defined range on Nasdaq Stockholm, which is determined by the highest bid and lowest ask prices continuously published.

Moreover, to ensure integrity and compliance, no share buybacks will be made within a 30 day window following the publication of interim reports, including on the day they are published. This adherence to a blackout period is not only regulatory but also a best practice within the finance and corporate governance landscape.

Implications for Investors



For investors, this buyback represents a potentially lucrative opportunity as it is often interpreted as a sign of confidence from a company’s leadership. The decision to repurchase shares generally indicates that the board believes the stock is undervalued and that investing in its own shares is a better use of capital than other investment opportunities. Additionally, reducing the number of shares available in the market can lead to an increase in earnings per share (EPS) and can stimulate a positive reaction in stock prices, benefiting current shareholders.

Given Sinch’s ongoing growth trajectory since its inception in 2008, and its reputation among over 175,000 businesses globally, this initiative aims not only to enhance shareholder value but also to fortify the company's long-term sustainability. Sinch is recognized for its innovative Customer Communications Cloud that aids many of the world’s largest tech firms in refining their customer experience via mobile messaging, voice, and email.

About Sinch



Headquartered in Stockholm, Sweden, Sinch has consistently positioned itself as a leader in the communications space, particularly in helping organizations navigate digital communications efficiently. With a strong emphasis on profitability and growth, the company continues to thrive in a competitive environment, reinforcing its commitment to shareholders through actions like the proposed buyback and strategic investments in technology.

For more information, stakeholders can reach out to Sinch’s Investor Relations Director, Ola Elmeland, at +46 721 43 34 59 or via email at [email protected].

In summary, Sinch AB's share repurchase program is a forward-thinking strategy indicative of its robust health and commitment to its investors, ensuring a favorable alignment of interests as the company moves towards its goals.

Topics Financial Services & Investing)

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