(Adds detail, background)
ZURICH, March 31 (Reuters) - ABB will launch
its new $1 billion share buyback on April 3, the Swiss
engineering company said on Friday, with the intention to buy up
to 30 million of its shares.
The buyback is the latest by ABB, which has repurchased
around 286 million shares for roughly $8.6 billion since July
2020.
The new scheme, announced on March 23, will see the
equivalent of around 1.5% of ABB's issued shares being bought
back and canceled. It will run until March 20, 2024.
"This new program is consistent with ABB's capital
allocation principles and its capital structure optimization
program targeting to maintain a strong investment grade rating,"
ABB said on Friday.
The maker of industrial robots, drives and control systems
has focused on buybacks in recent years instead of big
acquisitions as it seeks to simplify its business under Chief
Executive Bjorn Rosengren.
Since former Sandvik boss Rosengren took charge in
March 2020, the Zurich-based company has sold four businesses
and spun off its Accelleron turbocharger business to its
shareholders.
In January, ABB sold its power conversion business to AcBel
Polytech Inc for $505 million, while in December it
completed the final stage of the sale of its power grids
business to Hitachi , which brought in $1.4 billion.
The company is also looking to float its 2.6 billion Swiss
franc ($2.85 billion) E-Mobility electric vehicle charging
business, although the IPO has been delayed until ABB sees
better market conditions.
The moves, coupled with ABB's improved performance, have
helped the company's share price increase by nearly 54% since
Rosengren took charge, outpacing the 11% rise by the Swiss
Market Index .
($1 = 0.9136 Swiss francs)
(Reporting by John Revill, Editing by Rachel More and Mark
Potter)
Messaging: john.revill.thomsonreuters.com@reuters.net))
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.