CNH launches $1 bln buyback, NYSE single listing plan effective from Jan 2 (updated)
07/11/2023 16:28
(Adds details on timing)
MILAN, Nov 7 (Reuters) - Farm and construction equipment
maker CNH Industrial CNHI.MI said on Tuesday its plan to
abandon the Milan stock market and retain a single listing for
its shares on the New York Stock Exchange would be effective
from Jan. 2 next year.
The Italian-American group, whose shares are currently
traded both on the NYSE and in Milan, earlier this year
announced a plan to abandon its Italian listing.
CNH said in a statement on Tuesday that the Milan Stock
Exchange had approved an application it filed to delist its
ordinary shares from Milan bourse and had set the Jan. 2 date
for when a NYSE single listing will be effective.
Its shares will be tradable in Milan until Dec. 29.
CNH also on Tuesday
lowered its 2023 revenue forecast
, citing a softening for its farm machinery, predominantly
in South America, sending its shares plummeting.
As part of its New York single-listing plan, CNH
announced a new share buyback program worth up to $1 billion.
"The program is intended to optimize the capital structure
of the company and to assist with offsetting any potential
volatility arising from the delisting of its shares on Euronext
Milan," CNH said in a statement.
Since it spun-off its truck and bus unit in January 2022,
now separately listed as Iveco Group IVG.MI , the majority of
CNH stock trading has progressively shifted to NYSE, the company
said.
"Concentrating trading in one market should allow for
increased liquidity and investor focus, while further
simplifying the company profile and compliance requirements," it
said.
The new buyback program will run between Nov. 8 and March 1
and will be funded through the company's liquidity.
It will consist of two components: the repurchase of shares
worth up to 400 million euros ($428 million) on Euronext Milan
and on multilateral trading facilities between Nov 8 and Dec. 29
and the repurchase of shares for the remaining amount to be
executed on NYSE between Nov. 8 and Match 1.
Goldman Sachs is acting as financial advisor to CNH, while
BNP Paribas is acting as co-advisor and buyback agent for the
group in Europe.
($1 = 0.9343 euros)
(Reporting by Giulio Piovaccari, editing by Alvise
Armellini/Keith Weir)
((giulio.piovaccari@thomsonreuters.com))