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 2022, 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)
(This story has been corrected to say January 2022, not January 2024, in paragraph 5)
Reporting by Giulio Piovaccari, editing by Alvise Armellini
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