With the market looks upbeat, Luxembourg-based subsea services vessel owner Subsea 7 announced a share buy-back programme.
"Reflecting Subsea 7’s strong financial and liquidity position and improving market outlook as well as a rebalancing of cash returns to favour share repurchases, the Board of Directors authorised a new share repurchase programme of up to USD 200 million," said a press release from the subsea engineering, construction and services company serving the offshore energy industry.
The share repurchases are to be carried out within two years and the repurchased shares will be held in treasury and will be cancelled or used to fulfil obligations under Subsea 7’s employee share-based payment schemes.
Shares will be repurchased in the open market on the Oslo Børs. This share repurchase programme is in accordance with the authorisation (the Authorisation) granted to the Board of Directors at the Extraordinary General Meeting of the Company on 27 November 2014.
Under the Authorisation, the Company or any direct or indirect wholly-owned subsidiary of the Company, is authorised to purchase shares at a volume not exceeding 10% of the issued share capital in aggregate, subject to a) the maximum price to be paid for such shares not exceeding the average closing price for such shares on the Oslo Børs for the five most recent trading days prior to such purchase and b) the minimum price to be paid for such shares shall not be less than the par value (i.e. $2.00 per share) thereof and further provided such purchases are in conformity with Article 49-2 of the Luxembourg Company Law, the Authorisation being granted for purchases completed on or before 26 November 2019.