Equinor ASA (NYSE: EQNR) has disclosed that it has commenced the second tranche of the share repurchase programme for 2021 declared at the Capital Markets Day on 15 June 2021. The first tranche of the share repurchase programme of USD 300 million. It encompass shares to be converted from the Norwegian State, begun 28 July, and ended 28 September 2021 with a total buying in the market of USD 99 million, in total 4,575,502 shares.
The main aim of the share buy-back programme is to cut the issued share capital of the company. All shares buy bought as part of the programme will be annulled. According to a pact between Equinor and the Norwegian State, the Norwegian State will take part in the share repurchase on a balanced basis. It guarantee that its ownership interest in Equinor remains unmoved at 67%.
Furthermore, the share repurchase programme is designed into tranches where Equinor will purchase back shares of a certain amount in USD over a specific period. Moreover, for the second tranche which is running from 27 October 2021 up to no later than 31 January 2022, Equinor is entering into a non-discretionary agreement with a third party who will make its trading decisions independently of the firm.
Additionally, in this second tranche, shares for around USD 330 million will be acquired in the market. It proposed a total second tranche of around USD 1 billion including redemption of shares from the Norwegian State. The finishing of further tranches of the programme will be alerted to the market. Tranches completed after Equinor’s next year general meeting is conditional upon future annual general meetings renewing the authorization to repurchase own shares and renewal of the agreement with the Norwegian State.
The share repurchase programme is based upon the approval to acquire own shares granted to the board of directors at the yearly general meeting on 11 May 2021 and registered in the Norwegian register for business enterprises. The authorization is effective until the earliest of 30 June 2022 and the yearly general meeting in 2022.