Philips to repurchase shares for up to EUR 125 million to cover long-term incentive plans
Royal Philips (NYSE: PHG, AEX: PHIA) has announced a share repurchase program of up to EUR 125 million to cover obligations from its long-term incentive plans. At the current share price, this represents approximately 4.8 million shares. The repurchases will be executed through a combination of forward transactions and open market purchases with a financial institution.
Philips expects to take delivery of the forward share purchases in 2026, while open market purchases will be executed in Q3 2024 by an intermediary. All repurchases will comply with the EU Market Abuse Regulation and the authorization granted by the company's General Meeting of Shareholders on May 7, 2024. Updates on the program's progress will be made available through the company's website and press releases.
Royal Philips (NYSE: PHG, AEX: PHIA) ha annunciato un programma di riacquisto di azioni fino a 125 milioni di euro per coprire gli obblighi derivanti dai suoi piani di incentivazione a lungo termine. Al prezzo attuale delle azioni, questo corrisponde a circa 4,8 milioni di azioni. I riacquisti saranno effettuati attraverso una combinazione di transazioni forward e acquisti nel mercato aperto con un'istituzione finanziaria.
Philips prevede di ricevere le azioni acquistate tramite transazioni forward nel 2026, mentre gli acquisti nel mercato aperto saranno eseguiti nel terzo trimestre del 2024 da un intermediario. Tutti i riacquisti saranno conformi al Regolamento europeo sull'abuso di mercato e all'autorizzazione concessa dall'Assemblea Generale degli Azionisti dell'azienda il 7 maggio 2024. Aggiornamenti sui progressi del programma saranno resi disponibili tramite il sito web dell'azienda e comunicati stampa.
Royal Philips (NYSE: PHG, AEX: PHIA) ha anunciado un programa de recompra de acciones de hasta 125 millones de euros para cubrir las obligaciones derivadas de sus planes de incentivos a largo plazo. Al precio actual de las acciones, esto representa aproximadamente 4.8 millones de acciones. Las recompras se llevarán a cabo a través de una combinación de transacciones a plazo y compras en el mercado abierto con una institución financiera.
Philips espera recibir las acciones adquiridas a plazo en 2026, mientras que las compras en el mercado abierto se realizarán en el tercer trimestre de 2024 por un intermediario. Todas las recompras cumplirán con el Reglamento de Abuso de Mercado de la UE y la autorización otorgada por la Junta General de Accionistas de la compañía el 7 de mayo de 2024. Se pondrán a disposición actualizaciones sobre el progreso del programa a través del sitio web de la compañía y comunicados de prensa.
로열 필립스 (NYSE: PHG, AEX: PHIA)는 장기 인센티브 계획의 의무를 충당하기 위해 최대 1억 2500만 유로의 자사주 매입 프로그램을 발표했습니다. 현재 주가 기준으로 이는 약 480만 주에 해당합니다. 매입은 선도 거래와 개방 시장 구매의 조합을 통해 자금 조달 기관과 함께 실행됩니다.
필립스는 2026년에 선도 거래로 매입한 주식을 수령할 것으로 예상하며, 개방 시장 구매는 2024년 3분기에 중개인을 통해 실행될 것입니다. 모든 매입은 EU 시장 남용 규정 및 2024년 5월 7일 주주 총회에서 승인받은 사항에 따라 이루어질 것입니다. 프로그램의 진행 상황에 대한 업데이트는 회사 웹사이트와 보도 자료를 통해 제공될 것입니다.
Royal Philips (NYSE: PHG, AEX: PHIA) a annoncé un programme de rachat d'actions pouvant atteindre 125 millions d'euros pour couvrir les obligations découlant de ses plans d'incitation à long terme. À l'actuel prix des actions, cela représente environ 4,8 millions d'actions. Les rachats seront effectués par le biais d'une combinaison de transactions à terme et de achats sur le marché ouvert avec une institution financière.
Philips prévoit de recevoir les actions achetées à terme en 2026, tandis que les achats sur le marché ouvert seront réalisés au 3ème trimestre 2024 par un intermédiaire. Tous les rachats seront conformes au Règlement européen sur les abus de marché et à l'autorisation accordée par l'Assemblée générale des actionnaires de la société le 7 mai 2024. Des mises à jour sur l'avancement du programme seront mises à disposition via le site web de l'entreprise et des communiqués de presse.
Royal Philips (NYSE: PHG, AEX: PHIA) hat ein Aktienrückkaufprogramm von bis zu 125 Millionen Euro angekündigt, um Verpflichtungen aus seinen langfristigen Anreizprogrammen abzudecken. Zum aktuellen Aktienkurs entspricht dies etwa 4,8 Millionen Aktien. Die Rückkäufe werden durch eine Kombination aus Forward-Transaktionen und Marktöffentlichen Käufen über eine Finanzinstitution durchgeführt.
Philips erwartet, dass die Forward-Aktienkäufe im 2026 geliefert werden, während die Marktöffentlichen Käufe im 3. Quartal 2024 durch einen Vermittler durchgeführt werden. Alle Rückkäufe werden den EU-Vorschriften gegen Marktmissbrauch und der Genehmigung, die auf der Hauptversammlung der Aktionäre am 7. Mai 2024 erteilt wurde, entsprechen. Updates zum Fortschritt des Programms werden über die Unternehmenswebsite und Presseerklärungen verfügbar gemacht.
- Share repurchase program of EUR 125 million to cover long-term incentive plans
- Combination of forward transactions and open market purchases for flexibility
- Compliance with EU Market Abuse Regulation and shareholder authorization
- None.
Insights
Philips' decision to repurchase shares worth up to
The use of both forward transactions and open market purchases demonstrates a balanced approach to share repurchases. The forward purchases, with delivery expected in 2026, suggest long-term financial planning. Meanwhile, the open market purchases in Q3 2024 provide near-term flexibility. This strategy allows Philips to manage its cash flow effectively while securing the necessary shares.
Investors should note that while share repurchases can be seen as a positive signal of company confidence, they don't directly create value. The impact on earnings per share (EPS) will depend on the execution timing and price of the repurchases.
Philips' share repurchase program aligns with best practices in corporate governance. The company is transparently communicating its intentions and has secured proper authorization from shareholders, demonstrating respect for shareholder rights. The use of an intermediary for open market purchases during both open and closed periods shows commitment to regulatory compliance, particularly with the EU Market Abuse Regulation.
The long-term incentive plan coverage indicates a focus on aligning management interests with shareholders. However, investors should scrutinize the details of these plans to ensure they truly drive long-term value creation. The forward-looking nature of the repurchases, with delivery expected in 2026, suggests careful planning and a long-term outlook in executive compensation strategy.
Philips' approach to providing regular updates on the program's progress enhances transparency and accountability, which are important elements of good corporate governance. This level of disclosure should be viewed positively by stakeholders.
August 5, 2024
Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA) today announced that it will repurchase shares for an amount of up to EUR 125 million to cover certain of its obligations arising from its long-term incentive plans. At the current share price, this represents a total of approximately 4.8 million shares.
The repurchases will be executed through a combination of forward transactions and open market purchases with a financial institution. Philips expects to take delivery of the forward share purchases in 2026. The open market purchases will be executed in Q3 2024 by an intermediary to allow for share purchases during both open and closed periods. All repurchases will be executed in accordance with the EU Market Abuse Regulation and within the limits of the authorization granted by the company’s General Meeting of Shareholders on May 7, 2024.
Updates on the progress of the program and further details will be made available via this link and through press releases as appropriate.
For further information, please contact:
Ben Zwirs
Philips External Relations
Tel.: +31 6 1521 3446
E-mail: ben.zwirs@philips.com
Dorin Danu
Philips Investor Relations
Tel.: +31 20 59 77055
E-mail: dorin.danu@philips.com
About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and well-being through meaningful innovation. Philips’ patient- and people-centric innovation leverages advanced technology and deep clinical and consumer insights to deliver personal health solutions for consumers and professional health solutions for healthcare providers and their patients in the hospital and the home. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, ultrasound, image-guided therapy, monitoring, and enterprise informatics, as well as in personal health. Philips generated 2023 sales of EUR 18.2 billion and employs approximately 68,700 employees with sales and services in more than 100 countries. News about Philips can be found at www.philips.com/newscenter.
Forward-looking statements
This release contains certain forward-looking statements with respect to the financial condition, results of operations and business of Philips and certain of the plans and objectives of Philips with respect to these items. Examples of forward-looking statements include statements made about the strategy, estimates of sales growth, future EBITA, future developments in Philips’ organic business and the completion of acquisitions and divestments. By their nature, these statements involve risk and uncertainty because they relate to future events and circumstances and there are many factors that could cause actual results and developments to differ materially from those expressed or implied by these statements.
FAQ
What is the value of Philips' share repurchase program announced on August 5, 2024?
How many shares does Philips plan to repurchase under this program (PHG)?
When will Philips execute the open market purchases for the share repurchase program?
What is the purpose of Philips' share repurchase program announced in August 2024?
