CS - UBS modifies share buyback program following Credit Suisse takeover - report

2023-04-18 06:23:24 ET

Following its acquisition of Credit Suisse, UBS ( NYSE: UBS ) announced revisions to its $6 billion share buyback program, Reuters reported Tuesday.

Following approval from the Swiss Takeover Board, the bank stated that it will utilise part of the shares for the takeover rather than cancelling them as initially intended.

UBS stated that it will not issue new shares for the transaction, instead opting to utilise existing shares.

The acquisition agreement calls for one UBS share to be swapped for 22.48 Credit Suisse shares, with a maximum of 178 million UBS shares being utilised.

So far, 298.5 million shares have been purchased under the repurchase program, which began in March 2022 and will end in 2024, representing 8.47% of the company's equity, according to UBS.

Last month, UBS ( UBS ) agreed to purchase ailing Credit Suisse ( NYSE: CS ) in a stock-based transaction for a total of CHF 3 billion (US$3.25 billion), in a merger arranged by Swiss regulators to avert additional market-shaking instability in global banking.

More on Credit Suisse ( CS ) and the Bank Crisis:

• EU regulators to focus on liquidity rules after Credit Suisse debacle

• FINMA stands by $17B AT1 bond wipeout in Credit Suisse takeover

• UBS Swallows Credit Suisse: More Holes Than Cheese

• UBS Group Scores A Massive Win With The Acquisition Of Credit Suisse

• UBS chair tells investors Credit Suisse deal is 'financially attractive'

• UBS said to weigh retaining Credit Suisse's wealth unit in India

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