Fugro announces that it will implement an open market share buyback programme for an amount of EUR 50 million. The programme will result in a reduction of the company's share capital by cancelling all shares acquired through the repurchase programme, also offsetting dilution from the recently matured convertible bonds.
The programme is enabled by Fugro’s sound cash generating capability and demonstrates the company’s strict capital allocation strategy: preserving Fugro’s financial flexibility to invest for sustainable growth, while maintaining a strong balance sheet and a dividend pay-out ratio of 25-45%.
The programme will start today and is expected to be completed mid-January or sooner if the total amount of the programme is reached earlier. Fugro will provide weekly updates on the progress of the programme, in line with applicable regulations, on its website.
It will be executed under the terms of an engagement letter with a third party in compliance with the safe harbor provisions for share repurchases. Accordingly, transactions may be carried out during closed periods. The programme will also be executed in compliance with applicable rules and regulations, including the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052. It is carried out under the authority granted by the annual general meeting of shareholders on 25 April 2024, which is valid up to and including 25 October 2025.
In addition, Fugro is exploring refinancing its current EUR 400 million term loan and revolving facilities agreement with an international syndicate of banks, at improved terms and extended maturities, commensurate with its improved credit profile. The aim is to complete this refinancing in the near term, and Fugro will provide updates as and when required.
