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Norsk Hydro: Initiation of share buyback program

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Norsk Hydro ASA's Board of Directors announced a share buyback program aimed at enhancing shareholder value by reducing share capital. The program involves repurchasing up to 100 million shares for a total of NOK 2,000 million, representing about 1.6% of the company's current market value. Set to begin on September 26, 2022, and conclude by March 29, 2023, the buyback will redeem shares on a pro-rata basis for the Norwegian State. The share price for repurchase will range between NOK 20 and NOK 150, managed by DNB Markets under the EU Market Abuse Regulation.

Positive
  • Share buyback program enhances shareholder value.
  • Reduces share capital by approximately 1.6% of market value.
Negative
  • None.

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The Board of Directors of Norsk Hydro ASA has resolved to initiate a share buyback program to service its shareholders by way of reducing its share capital. The share buyback program will be executed in accordance with the authorization granted to the Board of Directors by the Extraordinary General Meeting of Norsk Hydro held on September 20, 2022.

The share buyback program covers purchase of up to 100,000,000 shares with a maximum value of NOK 2,000 million, inclusive of the proportional redemption of shares owned by the Norwegian State. NOK 2,000 million is equivalent to approximately 1.6% of the market value of the share capital in Norsk Hydro at the current share price level. The buyback program will commence September 26, 2022 and is planned finalized within March 29, 2023, with the authorization being valid until September 20, 2023.  The shares repurchased under the buyback program will be redeemed (cancelled) by way of a share capital decrease in Norsk Hydro, subject to approval by Norsk Hydro’s General Meeting.

The minimum and maximum amounts that can be paid per share shall be NOK 20 and NOK 150, respectively.

Norsk Hydro has entered an agreement with the Norwegian State according to which the Norwegian State's shares will be redeemed on a pro-rata basis to ensure that the Norwegian State's ownership is unchanged when shares are cancelled.

Norsk Hydro has engaged DNB Markets, a part of DNB Bank ASA, to manage and carry out the share repurchases in the market. DNB Markets will make its trading decisions independently of, and uninfluenced by, Norsk Hydro.

The share buyback program is carried out in accordance with the Market Abuse Regulation (EU) No 596/2014 ("MAR") and Commission Delegated Regulation (EU) No 2016/1052 ("Safe Harbour Regulation").

This information is made public by Norsk Hydro pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

Investor contact:
Line Haugetraa
Head of Investor Relations
+47 41406376
Line.haugetraa@hydro.com


FAQ

What is the duration of Norsk Hydro's share buyback program?

The share buyback program will commence on September 26, 2022, and is planned to be finalized by March 29, 2023.

How much is Norsk Hydro planning to spend on the buyback program?

Norsk Hydro plans to spend up to NOK 2,000 million on the share buyback program.

What is the range of share prices for the buyback?

The minimum and maximum amounts that can be paid per share are NOK 20 and NOK 150, respectively.

How many shares will Norsk Hydro buy back?

The program covers the purchase of up to 100 million shares.

Who is managing the share buyback program for Norsk Hydro?

DNB Markets, part of DNB Bank ASA, has been engaged to manage the share repurchases.
Norsk Hydro A S

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