Philips to repurchase up to 2 million shares to cover long-term incentive and employee stock purchase plans

Rhea-AI Summary

Royal Philips (NYSE: PHG) announced a share repurchase plan of up to 2 million shares, totaling approximately EUR 91 million. This initiative aims to fulfill obligations from long-term incentive and employee stock purchase plans. The buybacks will occur through forward transactions in the second quarter of 2021, adhering to the Market Abuse Regulation and the authorization from shareholders on May 6, 2021. Shares are expected to be delivered in 2023.

Positive

• Share repurchase enhances shareholder value by addressing obligations from incentive plans.
• The buyback signals confidence in the company's financial stability.

Negative

• None.

May 19, 2021

Amsterdam, the Netherlands – Royal Philips (NYSE: PHG, AEX: PHIA) today announced that it will repurchase up to 2 million shares to cover certain of its obligations arising from its long-term incentive and employee stock purchase plans. At the current share price, the shares represent an amount of up to approximately EUR 91 million.

The repurchases will be executed through one or more individual forward transactions, to be entered into in the course of the second quarter of 2021, in accordance with the Market Abuse Regulation and within the limits of the authorization granted by the company’s General Meeting of Shareholders on May 6, 2021. Philips expects to take delivery of the shares in 2023. Further details will be available via this link.

For further information, please contact:

Ben Zwirs
Philips Global Press Office
Tel.: +31 6 15213446
E-mail: ben.zwirs@philips.com

Derya Guzel
Philips Investor Relations
Tel.: +31 20 59 77055
E-mail: derya.guzel@philips.com

About Royal Philips
Royal Philips (NYSE: PHG, AEX: PHIA) is a leading health technology company focused on improving people's health and enabling better outcomes across the health continuum from healthy living and prevention, to diagnosis, treatment and home care. Philips leverages advanced technology and deep clinical and consumer insights to deliver integrated solutions. Headquartered in the Netherlands, the company is a leader in diagnostic imaging, image-guided therapy, patient monitoring and health informatics, as well as in consumer health and home care. Philips generated 2020 sales of EUR 17.3 billion and employs approximately 77,000 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 Royal Philips' plan for share repurchase in 2021?

Royal Philips plans to repurchase up to 2 million shares valued at approximately EUR 91 million.

When will Philips execute the share buyback?

The share repurchases will be executed in the second quarter of 2021.

What is the purpose of Philips' share buyback?

The buyback is intended to cover obligations arising from long-term incentive and employee stock purchase plans.

When are the shares expected to be delivered?

Philips expects to take delivery of the repurchased shares in 2023.

How does the share buyback affect Philips' stock price?

The share buyback is likely to enhance shareholder value and may positively influence the stock price.