Share Buyback Programme - Week 50

In week 50, Spar Nord Bank announced a share buyback programme worth up to DKK 500 million, aiming to repurchase up to 3.3 million shares. As of 10 December 2024, the bank has repurchased 3.307,246 shares, with a total transaction value of DKK 422,524,406. The programme is set to end on 31 January 2025.

The share buyback programme had a significant impact on the company's share price and earnings per share (EPS). The repurchase of shares reduced the number of outstanding shares, increasing the proportion of shares owned by investors. This led to an increase in the company's EPS, while the price-to-earnings (P/E) ratio decreased or the stock price increased. Additionally, the share repurchase demonstrated to investors that the business had sufficient cash set aside for emergencies and a low probability of economic troubles.

The share buyback programme was discontinued on 10 December 2024, following the announcement of an all-cash voluntary takeover offer from Nykredit. The offer valued Spar Nord at DKK 500 million, which was considered a fair price given the bank's financial situation and market conditions. The management team emphasized that accepting the offer would provide shareholders with immediate liquidity and certainty, while the alternative of continuing the buyback programme would be more uncertain and potentially less beneficial in the long run. They also noted that the takeover would allow Spar Nord to focus on its core banking activities and improve its financial position.