Skeljungur hf.: Share buy-back program initiated
At Skeljungur hf.´s AGM, which was held on March 5, 2020, shareholders authorized the Board of Directors of the Company to purchase shares in the Company, on the condition that the Company together with its subsidiaries shall only hold a maximum of 10% of the Company´s shares.
The Board of Directors of Skeljungur hf. have decided to initiate a share buy-back program in accordance with the existing authorization. It is planned to buy up to 24,820,946 of the Company´s own shares, which corresponds to 1.25% of the issued share capital, although the amount of the repurchases shall not exceed ISK 250.000.000. The main purpose of the program is to reduce the issued share capital of the company.
Purchases under the program shall be divided into numerous transactions, however the daily trade will not exceed 25% of the average daily volume of the shares traded in February 2020 on Nasdaq Iceland, which amounts to 3,585,505 shares. The purchase price for shares shall not be higher than the price of the last independent trade or the last independent bid in Nasdaq Iceland, whichever is higher.
Purchases under the program is expected to begin on March 19, 2020 and the program will remain in effect until the Company´s AGM 2021, unless the conditions for maximum purchases are met before that time.
Skeljungur hf. currently holds 166,356,181 of own shares, or 7.7% of the issued share capital in the Company. At the Company's AGM on March 5, 2020, it was decided to reduce the Company's share capital from the nominal value of ISK 2,152,031,847 to the nominal value of ISK 1,985,675,666 through the cancellation of all the Company´s own shares which the Company currently holds. The reduction has not yet been registered at The Icelandic Revenue and Customs Registration (IRC). Skeljungur hf. hopes that the reduction will be registered within a few days at the IRC. It will be announced when the reduction has been registered.
The buy-back program will be managed by Arion banki hf. which will make its trading decisions regarding the purchases and the timing of the purchase, without influence by the company. The execution of the share buy-back program will be according to the provisions of Act respecting Public Limited Companies, no. 2/1995, and Appendix to Regulation on Insider Information and Market Manipulation no. 630/2005. Transactions with owns shares according to the buy-back program will be publicly disclosed no later than at the end of the seventh business day following the day of execution of such transactions.
For further information please contact Ólafur Þór Jóhannesson, CFO .
Skeljungur is an energy company with operations in Iceland and in the Faroe Islands. Skeljungur sells fuel and oil to consumers and businesses in fisheries, agriculture, transportation, aviation and construction under the brands Skeljungur, Orkan, and Magn. Skeljungur is also in the retail market under the brand Kvikk. The company also sells fertilizer and other chemical products and is on the retail market. In Iceland the Company runs 65 gas stations and 4 oil depots. Magn P/F, Skeljungur´s subsidiary in the Faroe Islands, runs 11 retail and gas-stations and 2 oil depots. Magn also serves and sells oils for house heating to individuals and companies in the Faroe Islands. Skeljungur´s goal is to serve the energy needs of consumers and businesses in an efficient and safe way and in harmony with the environment.
