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AMSTERDAM -- Ahold said today that it's initiating the 1 billion-euro (US $1.36 billion) share buyback program as promised on Aug. 30. This program will be executed by intermediaries via on-exchange purchases and will end as soon as the aggregate purchase price of the common shares acquired by Ahold has reached 1 billion euros, or the company holds 10 percent of the issued shares.
The maximum consideration for each common share won't exceed, among other things, the higher of the last independent trade and the highest current independent bid on the relevant trading venue. The top number of shares to be repurchased on any given day won't exceed 25 percent of the average daily trading volume on the regulated market on which purchases are made, calculated over the last 20 trading days before the date of repurchase. The program doesn't include repurchases of Ahold's American Depositary Receipts (ADRs).
In May shareholders authorized Ahold to acquire and cancel shares for an 18-month period.
The purpose of this share buyback program is to return value to shareholders. Ahold intends to cancel the common shares purchased through the share buyback program or to use some of the shares for commitments under employee share-based compensation.
Ahold will issue weekly progress reports to the public on the buyback program.