ABB Plans to Launch New Share Buyback of up to $3 Billion Following Completion of 2021-2022 Program
ABB has completed its share buyback program initiated in April 2021, repurchasing 90,066,100 shares for about $3.1 billion. This action is part of a broader strategy to return cash from its $7.8 billion Power Grids divestment. A new buyback program of up to $3 billion is set to begin in April 2022, targeting the remaining $1.2 billion from the divestment. The company plans to cancel 88,403,189 shares at its AGM and intends to acquire up to 15 million shares for employee programs.
- Repurchased 90,066,100 shares for approximately $3.1 billion, enhancing shareholder value.
- New buyback program of up to $3 billion indicates confidence in future performance.
- None.
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Follow-up share buyback program expected to begin in
April 2022 and run until 2023 Annual General Meeting. -
Buyback to exceed remaining
from Power Grids divestment$1.2 billion
At today’s Annual General Meeting (AGM), as separately announced, ABB shareholders approved the cancellation of 88,403,189 shares: 74,782,600 shares purchased under the 2021-2022 program and 13,620,589 shares purchased under the initial Power Grids capital return program that had not been proposed for cancellation at ABB’s 2021 AGM.
Consistent with ABB’s capital allocation principles and its capital structure optimization program targeting to maintain a strong investment grade rating, ABB’s Board of Directors today approved a new share buyback program of up to
ABB CFO
ABB intends to request shareholders to approve the cancellation of the remaining shares purchased under the 2021-2022 program as well as those purchased under this new program at its 2023 AGM.
In addition, ABB intends to purchase up to 15 million shares until the 2023 AGM mainly for use in connection with its employee share plans.
ABB currently owns approximately 140 million treasury shares including the 88 million shares approved for cancellation at today’s AGM.
ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries. www.abb.com
Important notice about forward-looking information
This press release includes forward-looking information and statements concerning the share buyback program. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, and are generally identifiable by statements containing words such as “intends”, “expects,” “plans”, or similar expressions. However, there are many risks and uncertainties, many of which are beyond our control, that could affect our ability to achieve any or all of our stated targets. Factors that could cause such differences include, among others, business risks associated with the volatile global economic environment and political conditions, changes in governmental regulations and currency exchange rates and such other factors as may be discussed from time to time in ABB Ltd’s filings with the
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