Dutch incumbent KPN has kick-started a new E1bn share repurchase programme that it expects will be completed by the end of this year.
The share buyback plan, announced during 4Q results on 26 January, is part of efforts to keep the group’s net debt to…
Dutch incumbent KPN has kick-started a new E1bn share repurchase programme that it expects will be completed by the end of this year.
The share buyback plan, announced during 4Q results on 26 January, is part of efforts to keep the group’s net debt to EBITDA ratio at between 2.0x and 2.5x. At the end of Q4 2010, this ratio stood at 2.2x.
KPN announced the completion of a separate E1bn share repurchase programme on 13 December, when it revealed a total of 2,654,956 ordinary shares were acquired throughout the year, and then cancelled, at an average price of E11.
“In line with previous share repurchase programs, KPN has mandated an intermediary to repurchase KPN shares in the open market on KPN’s behalf, allowing the execution of share repurchases during closed periods,” the company said in a statement on its website.
The group will publish weekly updates on the progress of its share repurchase programme.
Meanwhile, it is reportedly set to announce changes to the way it calculates executive bonuses to give more weight to long-term performances.
KPN executives currently receive relatively low basic salaries but large bonuses tied with financial targets. The changes will help reduce pressure for risk taking to meet short-term goals, according to reports citing local paper Financieele Dagblad.
Over the past ten years, KPN CEO Ad Scheepbouwer has reportedly earned more than E44m, largely due to bonuses and options.
KPN was unable to comment before the press deadline.
