Danish engineering company FLSmidth & Co. on Friday announced a share buyback program of up to 1.4 billion Danish kroner, its first such program since 2012.
The move follows the company's announcement earlier Friday that it had agreed to sell its Cement business to an affiliate of private equity firm Pacific Avenue Capital Partners, transforming FLSmidth into a pure-play supplier for the mining industry.
The company said the buyback decision was supported by stronger financial performance and the recent divestments, which also included the sale of its corporate headquarters in Copenhagen.
"The divestment allows us to sharpen our focus on our core Mining business, positioning FLSmidth as a pure-play leader in the mining industry," Chief Executive Mikko Keto said in a statement regarding the sale.
The cement unit was sold for an initial consideration of 75 million euros, with a potential deferred payment of up to another 75 million euros, the company said.
The buyback program will run from June 25, 2025, to March 20, 2026, and will cover up to 4.6 million shares, or about 8% of the company's share capital.
FLSmidth said it intends to propose the cancellation of the repurchased shares.
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