Repurchase of shares
Wallenstam is mandated through resolutions at AGM’s to repurchase Wallenstam shares. The purpose is to enable any possible acquisitions to adjust the company’s capital structure and thus contribute to the more efficient use of the company’s resources.
During the years 2000-2018, Wallenstam has used this opportunity through regular repurchases. Under the current business plan, Wallenstam does not buy back shares to the same extent as before, as the company's capital is mainly used for investments in the business.
A number of restrictions apply to repurchases. These derive from AGM resolutions, legislation and other regulations. The limitations are:
- The 10 per cent rule: Wallenstam may own no more than 10 per cent of its own shares at any given time.
- Non-restricted equity: Only non-restricted equity may be used to repurchase the company’s own shares.
- The insider rule: No purchases may take place for a period of 30 days before the report date and on the reporting date itself. During this period, Wallenstam is considered to have such good information about profit or loss that it is deemed an insider.
- Share price range on the stock exchange: The acquisition of shares through trading on the stock exchange may only take place at a share price within the price range prevailing at the exchange at any given time, meaning the spread between the highest purchase price and the lowest selling price.
- Payment for shares must be made in cash.
- General repurchasing regulations: Worth mentioning among such regulations is the fact that Wallenstam may not influence trade in its own shares by purchasing more than 25 per cent of the average daily share turnover for the four previous calendar weeks. Exceptions are made for so-called block transactions.
Wallenstam’s repurchases are announced on completion of the purchase. The latest information is available on the Stockholm NASDAQ website, which is updated daily.