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UBS makes changes to buyback programme following Credit Suisse takeover
Global Banking & Finance Review®
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ZURICH (Reuters) -UBS on Tuesday said it was making changes to its $6 billion share buyback programme following its takeover of Credit Suisse.
ZURICH (Reuters) -UBS on Tuesday said it was making changes to its $6 billion share buyback programme following its takeover of Credit Suisse.
UBS said it will use some of the shares for the takeover rather than cancelling them as originally planned after getting approval from the Swiss Takeover Board.
Switzerland’s biggest bank agreed in March to buy rival Credit Suisse CSGN.S for 3 billion Swiss francs in stock and agreed to assume up to 5 billion francs in losses, in a merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking.
UBS on Tuesday said it had decided against issuing new shares for the deal, but would instead use shares that had already been issued.
Under the deal, one UBS share will be exchanged for 22.48 shares in Credit Suisse, requiring a maximum of 178 million UBS shares to be used.
So far under the buyback – which was launched in March 2022 and will run until 2024 – 298.5 million shares have been bought back, equivalent to 8.47% of its stock, UBS said.
(Reporting by John Revill, Editing by Rachel More)
A share buyback occurs when a company purchases its own shares from the marketplace, reducing the number of outstanding shares and often increasing the value of remaining shares.
Equity represents ownership in a company, typically in the form of shares. It reflects the value of the company after liabilities are subtracted from assets.
Corporate bonds are debt securities issued by companies to raise capital. Investors receive periodic interest payments and the return of principal at maturity.
Financial stability refers to a condition where the financial system operates effectively, with institutions able to manage risks and absorb shocks without significant disruptions.
A takeover occurs when one company acquires control over another by purchasing a majority of its shares, often resulting in changes to management and operations.
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