A share buyback programme by ABB launching today is part of its plan to return to shareholders US$7.8 billion of cash from its Power Grids divestment.
The programme of up to $4.3 billion represents a maximum of approximately 137 million shares, based on the current share price.
Under an initial programme, ABB repurchased a total of 128,620,589 shares – equivalent to 5.93 per cent of its issued share capital at the launch of the programme – for a total amount of approximately $3.5 billion. ABB shareholders approved the cancellation of 115 million of these shares at its 2021 annual meeting.
ABB says the follow-up buyback programme is for capital reduction purposes and will be executed on a second trading line on the SIX Swiss Exchange planned to run from April 9, 2021 until March 23, 2022.
Global technology company ABB has about 105,000 employees in more than 100 countries.