The board of directors of AP Møller-Mærsk (APMM) has decided to exercise the authority given at the Annual General Meeting in April 2019 of acquiring up to 15% of the share capital over two years to initiate a share buy-back programme of up to DKK10 billion (US$1∙5 billion) and a maximum of 3∙12 million shares to be acquired over a period of up to 15 months.

The decision to initiate the share buy-back program is supported by strong free cash flow generation from the continuing businesses and proceeds from the separation of the energy businesses, which has led to deleveraging of the company and credit metrics in line with investment grade rating.

The programme is in alignment with previous announced intention to distribute a material part of the value of shares received in Total as part of the sale of Maersk Oil, subject to maintaining investment grade rating and the completion of the demerger of Maersk Drilling.

After execution of the announced program, the board of directors will evaluate the capital structure and outlook of APMM with the intention to distribute additional cash to shareholders, subject to maintaining investment grade rating.

The share buy-back is carried out with the purpose to adjust the capital structure of APMM and to meet obligations under long-term incentive programs. Shares which are not used for hedging purposes for the long-term incentive programs will be proposed cancelled at the annual general meetings in 2020 and 2021.

First phase of the share buy-back programme is expected to run from beginning of June 2019. Further details on the shares to be acquired in the first phase will be provided before the initiation of the programme.