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STMicroelectronics launches share buy-back programme

1st July 2021
Joe Bush

STMicroelectronics has announced the launch of a share buy-back programme of up to $1,040m to be executed within a three-year period (subject to shareholder and other approvals). The share buy-back programme will be carried out in accordance with the authorisation of the Supervisory Board and the provisions of the Market Abuse Regulation (EU) 596/2014 and Commission Delegated Regulation (EU) 2016/1052.

The company intends to carry out the buy-back programme, and hold the shares bought back as treasury stock, for the purpose of meeting the company's obligations in relation to its employee stock award plans and to support the potential settlement of its outstanding convertible bond. As of 28th June the company holds approximately eight million treasury shares, representing approximately 0.9% of its issued share capital.

The company will appoint one or more brokers to execute the share buy-back programme in accordance with all applicable regulations. The brokers will make their decisions relating to the purchase of company shares independently, including with respect to the timing of any purchases, and all purchases effected will be in compliance with daily limits on prices and volumes.

The company’s closing share price on the New York Stock Exchange on 30th June, 2021, was $36.38 and, at such a price, the maximum number of shares that could be acquired for $1,040m would be approximately 28.6 million, which represents approximately 3.1% of the company’s issued share capital.

Purchases of shares will be made on one or more trading venues, which may include the regulated market of Euronext Paris, the Mercato Telematico Azionario organised and managed by Borsa Italiana and the New York Stock Exchange.

The price paid for any share purchased pursuant to the share buy-back programme shall be subject to:

  • A minimum of €1.04 per share.
  • A maximum of 110% of the average of the highest price per common share on each of the five trading days prior to the purchase date, on each of the regulated market of Euronext Paris, the Mercato Telematico Azionario organised and managed by Borsa Italiana and New York Stock Exchange.
  • A maximum of the greater of (i) the price of the last independent trade and (ii) the highest current independent purchase bid on the trading venue where the purchase is carried out.
  • All other applicable rules.

The actual timing, number and value of company shares repurchased under the share buy-back programme will depend on a number of factors, including market conditions, general business conditions and applicable legal requirements. The company is not obligated to carry out the share buy-back programme, and, if commenced, the share buy-back programme may be suspended and discontinued at any time, for any reason and without previous notice, in accordance with applicable laws and regulations.

The share buy-back programme implements the resolution of the company’s shareholders pursuant to its annual shareholders’ meeting held on 27th May to repurchase shares in accordance with the authorisation of the Supervisory Board. Continuation of the share buy-back programme will be subject to future shareholder approval at the company's 2022 annual shareholders’ meeting.

The company will announce details of any share purchases effected pursuant to the share buy-back programme, as required by applicable laws and regulations. The costs that the company may incur in connection with the purchase of the shares pursuant to the share buy-back programme will depend on the price and the terms on which actual purchases are made.

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