Share Buyback is the possibility to purchase shares of the own company. The share buyback must be approved by the Annual General Meeting. The par value of the shares held may not exceed 10% of the share capital.
Overview of the Current Share Buyback Program
As announced at the Capital Market Day in January 2009, Telekom Austria Group evaluated the potential for a share buyback. Although financial markets make financing available, the operating performance in South- and Eastern Europe is subject to uncertainties and the risk of currency devaluations still remains. Nevertheless, the Telekom Austria Group envisages in accordance with the capital allocation policy to start share buybacks in 2010 depending on the normalization of business, stable currencies and provided no investment with a higher return is available. About 1/3 of free cash flow after dividends is available for a potential share buyback. The rest remains as a reserve.
Due to the acquisition of MDC the target level of net debt/EBITDA of 2.0x has been exceeded and therefore Telekom Austria Group froze the acquisition of treasury shares by October 2007 in 4Q 07.
Telekom Austria Group Acquires 70% Stake in Belarusian Mobile Operator MDC for 5.9x08E EBITDA
On August 26, 2004 Telekom Austria announced the beginning of the share buyback currently underway.
Details of the share buyback program were announced on March 24, 2004 for the first time. In the Annual General Meetings of May 25, 2005, May 23, 2006 and May 30, 2007 they were adapted and are comprised of the following:
- Buyback of 46 million shares, i.e. up to 10% of the current common stock
- Price band: EUR 9 to EUR 30
- Duration of authorization until November 30, 2008
- The buyback takes place via the stock exchange
- By previous resolution of the annual general meeting, the Management Board is authorized to reduce common stock by cancelling own shares up to 10% (EUR 100,326,000.-).
- Shares repurchased can be used
- to serve stock options or to issue shares to employees
- to serve convertible bonds
- as consideration for acquisitions
- to sell the shares
Details on shares repurchased will be announced here.
Buyback information as XLS document (115.0 KB)
The following documents were released in connection with the share buyback:
Resolution of the Management Board of August 19, 2009 to Cancel Treasury Shares (18.8 KB)
Resolution of the Management Board of March 19, 2007 to Cancel Treasury Shares (18.9 KB)
Resolution of the Management Board of May 23, 2006 to act on the authorization to buyback shares (21.8 KB)
Resolution of the Management Board of May 25, 2005 to act on the authorization to buyback shares (71.2 KB)
Amended authorization by the annual general meeting of June 3, 2004 to repurchase shares (64.4 KB)
Resolution of the Management Board of March 24, 2004 to act on the authorization to buyback shares (63.5 KB)
Buyback in the Course of the Stock Option Program on February 27, 2004
On February 27, 2004 stocks amounting to 0.67% of the share capital were repurchased to serve stock options.Ad Hoc Release of February 20, 2004 on the Intention to Buyback
Report about the Buyback, Pursuant to Para 7 Disclosure Regulation 2002 (52.8 KB)
