Maranello (Italy), 28 December 2018 – Ferrari N.V. (NYSE/MTA: RACE) (“Ferrari” or the “Company”) announces that it intends to commence a Euro 150 million share buyback program (the “Initial Program”), as the first tranche of a multi-year Euro 1.5 billion total share buyback program expected to be executed by 2022 in line with the disclosure made during the 2018 Capital Markets Day. The Initial Program will start at the beginning of January 2019 and will end no later than 27 June 2019. The Initial Program will be funded through the Company’s available cash and common shares repurchased under the Initial Program may be used to meet the obligations arising from the Company’s equity incentive plan.
The Initial Program has two components.
Firstly, Ferrari has entered into a non-discretionary buyback agreement for an amount equivalent to Euro 100 million to be executed on the MTA market through a primary financial institution (the “Bank”). The Bank will make its trading decisions concerning the timing of the purchases of Ferrari’s common shares independently of and uninfluenced by Ferrari and it will act in compliance with applicable rules and regulations as well as in accordance with the provisions of the Market Abuse Regulation 596/2014 and the Commission Delegated Regulation (EU) 2016/1052 (the “Regulations”). Under this agreement purchases may continue during any closed periods of Ferrari in accordance with the Regulations.
Secondly, Ferrari intends to enter into an additional mandate with a primary financial institution for up to Euro 50 million to be executed on the NYSE. Pursuant to such mandate Ferrari would provide the financial institution with purchase instructions from time to time in compliance with applicable rules, regulations and legal requirements. The actual timing, number and value of common shares repurchased on the NYSE will depend on a number of factors, including market and general business conditions.
The Initial Program implements the resolution adopted by the Shareholders’ Meeting (held on 13 April, 2018) and duly communicated to the market, which authorized the purchase of up to 10% of the Company’s common shares during the eighteen-month period following such Shareholders’ Meeting. The repurchase authority will expire on 12 October 2019 or until such authority is extended or renewed before such date.
Details of the repurchase transactions carried out under the Initial Program shall be disclosed to the market as required by applicable regulation.
The Company currently holds No. 6,002,843 common shares in treasury.
The Initial Program replaces any previous common shares buyback program.