29/03/2022 | 08:00 CEST | Company announcement
Stäfa (Switzerland), March 29, 2022 – Sonova Holding AG, a leading provider of hearing care solutions, today announces the completion of its 2021-22 share buyback program, which was initially announced on May 18, 2021. Following its conclusion the Board of Directors approved a new share buyback program of up to CHF 1.5 billion which is expected to run over a period of up to 36 months.
Since initiating the 2021-22 share buyback program on June 4, 2021, Sonova repurchased a total of 2,012,438 registered shares (equivalent to 3.125% of the shares in issue as per the beginning of the program) for a total amount of CHF 699.3 million at an average purchase price of CHF 347.50 per share. The registered shares were repurchased on the SIX Swiss Exchange on a second trading line. The shares were repurchased for the purpose of a capital reduction, subject to approval by future Annual General Shareholders’ Meetings.
Sonova’s capital allocation strategy aims to combine investing into the core business and returning excess capital to its shareholders. The new share buyback program reflects Sonova’s confidence in the Group’s strong cash generating capacity. Sonova maintains a conservative financial policy and expects to have sufficient funds to further invest into its growth initiatives, including value-creating bolt-on acquisitions. In case of an attractive larger acquisition or a further deterioration of the geopolitical situation, the buyback could be suspended or the amount of the program could be adjusted accordingly. The Board of Directors intends to maintain the existing dividend policy in the future.
The new program will be funded by free cash flow and additional debt, targeting a Net Debt/EBITDA ratio of 1.0-1.5x over time. The buyback, worth up to CHF 1.5 billion, is expected to start at the latest in April 2022 and will run over a period of up to 36 months. It will be conducted via a separate trading line on the SIX Swiss Exchange. The shares will be repurchased for the purpose of a capital reduction, subject to approval by future Annual General Shareholders’ Meetings.
Details on the share buyback programs and the buyback notices are accessible on the following website:
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