ABB to buy back shares worth up to $1 billion

Electrification and automation technology leader ABB will launch a new share buyback programme for up to $1 billion, under which the company will be buying back nearly 21.3 million shares at the current market price.

ABB proposes to repurchase a maximum of 692,486 shares on any particular trading day under the new buyback progranmme.

ABB said the new programme is aimed at bringing its capital allocation to a level that will help maintain a strong investment grade rating. Over the past three years, ABB has repurchased about 308 million shares, reducing the share of capital with the  public by about $9.4 billion.

ABB has issued a total of 1,882,002,575 shares, of which it repurchased 21,387,687 shares under the 2023–2024 buyback programme. ABB, which currently holds about 30 million treasury shares, said it will decide on liquidation of the shares as mandated by its 2023 annual general meeting. 

ABB said the new share buyback programme, being executed on a second trading line on the SIX Swiss Exchange, will be open from 2 April 2024 till 31 January 2025.

However, the parametres of the buyback programme is subject to changes provided the company is not in possession of any inside information.

The purchase price will not exceed the highest of the last independent trade and the highest current independent bid price on the SIX Swiss Exchange. AB will also be paying the customary spreads on purchases on the trading line.