Schindler Holding's plans to conduct a share buyback had increased its stock value by as much as 5%. This represented the elevator company's highest increase since September 2011. At a little past noon, shares traded at 4.9% increase to CHF 128.10. Schindler Holding is engaged in the business of making and supplying freight and special elevators, escalators and moving walkways for clients around the world.
In an earlier statement, Schindler Holding said it would be buying back up to 5.8% of its registered shares at a price of CHF 129 per share. It would also be repurchasing as much as 8.9% of participation certificates at a price of CHF 129.80 apiece. The transactions, estimated to be worth USD 1.2 billion, would be happening in the first two weeks of November this year.
Schindler's Investor Relations Head Barbara Zaech told Bloomberg in a phone interview that the company had always been encouraged to actively carry out share repurchases. The opportunity was said to have arrived when a family shareholder offered to divest 2.37 million of its shares. Majority of the voting rights in Schindler had been held by the Shindler and Bonnard families and their relations.
Join the Conversation