Scandinavian Tobacco Group A/S: Launch of Share Buy-back Programme to Hedge Incentive Scheme Obligations

Source from:  GlobeNewswire 05/31/2016

The Board of Directors of Scandinavian Tobacco Group A/S ("STG") has decided to initiate a share buy-back programme of up to 412,462 shares, with the purpose of hedging obligations arising from STG`s share based incentive schemes.

The share buy-back programme is initiated pursuant to the authorisation granted to the Board of Directors in the company`s articles of association which allows for STG`s acquisition of its own shares up to a maximum amount of nominally DKK 10m. The share buy-back programme will be established and structured in accordance with Commission Regulation (EC) no 2273/2003 of 22 December 2003 and from 3 July 2016 in accordance with Article 5 of Regulation (EU) no 596/2014 of 16 April 2014 (the so-called Safe Harbour method).

The maximum total share buy-back in the period will amount to 412,462 shares (0.4% of the share capital), and the total consideration is maximized at DKK 55m. At the time of this announcement, STG holds no treasury shares.

STG has appointed Nordea Bank Danmark A/S ("Nordea") as lead manager for the programme. Nordea will make all trading decisions independently of and without involving STG. The maximum number of shares bought back on each trading day will not exceed 25% of the average daily volume of STG shares traded on Nasdaq Copenhagen during the preceding 20 trading days. No shares may be bought back at a price exceeding the higher of (i) the share price of the latest independent trade and (ii) the current highest independent bid at Nasdaq Copenhagen.

The share buy-back programme will be initiated on 30 May 2016 and end no later than 30 September 2016. STG may terminate the programme at any time. In the event such decision is taken, STG shall announce it via Nasdaq Copenhagen, and Nordea shall consequently no longer be entitled to buy shares on behalf of STG.

STG will report on trade activity under the share buy-back in weekly company announcements. Enditem