CNH launches $1 bln buyback to support NYSE single listing plan
07/11/2023 07:05
MILAN, Nov 7 (Reuters) - Farm and construction equipment
maker CNH Industrial CNHI.MI said on Tuesday it had approved a
new share buyback program worth up to $1 billion as part of its
plan to pursue single-listing in New York.
The Italian-American group, whose shares are currently
traded both at the NYSE and in Milan, earlier this year
announced a plan to abandon its Italian listing.
"The (buyback) 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.
The company said its board had approved and would file on
Tuesday an application to delist its ordinary shares from Milan
bourse. It is confident that single listing on NYSE would be
effective at the beginning of January next year, it added.
CNH said that, since it spun-off its truck and bus unit in
January 2024, now separately listed as Iveco Group IVG.MI , the
majority of CNH stock trading has progressively shifted to NYSE.
"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)
((giulio.piovaccari@thomsonreuters.com))