During today's meeting SAAT (Stichting Administratiekantoor Aandelen Triodos Bank), as Triodos Bank’s sole shareholder approved the Restricted Depository Receipts Buyback programme, including a so-called Solidarity Arrangement, authorising the Executive Board to acquire depository receipts for shares in the capital of Triodos Bank in connection with that programme.
With the authorisation by the EGM, Triodos Bank will be ready to execute the programme, provided that all required supervisory approvals from the relevant countries are obtained. In particular the approval for the Solidarity Arrangement is taking longer than previously expected. Taking into account the further course of the approval process, the Executive Board will assess whether it is feasible to use the mandate it obtained from the EGM for the Solidarity Arrangement. It cannot be ruled out that the Executive Board will decide to execute the general Buyback programme and wait with implementation of the solidarity arrangement. In the event that the Executive Board decides not to go ahead with the solidarity arrangement, the bank will continue with the general Buyback programme.
About the Restricted Buyback programme:
The restricted DR Buyback Programme (details of which were announced on 15 February 2022) is aimed at providing some liquidity until the listing of DRs on an MTF is realised, while the trade in DRs is still suspended in line with applicable rules and regulations. In this context, an amount of EUR 14.4 mln, equivalent to the remaining room to purchase DRs (“Market Making Buffer”), will be deployed to facilitate the restricted DR Buyback Programme.
The DR price for the Buyback programme is set at EUR 59, the same price as determined for administrative and fiscal reasons at the end of last year. This price represents the last trading price minus a 30% adjustment for illiquidity and is considered a fair assessment of the current economic value. It should be noted that this price will be applied for the restricted Buyback programme and does not represent any indication of the future price of the DRs once listed on an MTF.
An amount of EUR 3 million of the EUR 14.4 million available for the restricted Buyback programme, will be allocated to the DR-holders who are in most urgent need for liquidity to meet ongoing vital expenses. Specific criteria will apply to DR-holders to qualify for the solidarity arrangement.