DSM Resumes Share Buyback Plan
Dutch chemical producer DSM began repurchasing 2,500,000 ordinary shares, on 27 February 2014 to cover its commitments under existing management and personnel option plans. Based on the share's closing price in Amsterdam on Feb. 26, the buyback would be worth around €120 million.
The company said the share repurchase program - the second and final part of a program to repurchase a total of 5 million shares announced in September 2013 - is expected to continue into Q2 2014. The first tranche was completed in January, with 2,500,000 ordinary shares repurchased for a total consideration of 139 million.
Under a Discretionary Management Agreement signed with the bank executing the repurchase, the price will be based on the daily VWAP (Volume Weighted Average Price). On average, the volumes to be repurchased will represent 5% of the daily trading volume on Euronext Amsterdam.
Separately, DSM said it has successfully issued a €500 million 2.375% bond, due in 2024, as part of its debt reduction plan. The proceeds will be used to refinance the €500 million bond maturing on 17 March 2014.
