BASF share buyback scheme20 June 2008
The board of executive directors of BASF SE has decided to start a new share buyback programme and plans to buy back shares for €3 billion up to mid-2010. The share repurchase can start immediately based on the authorization by the annual meeting held on April 24, 2008.
The aim of buying back shares is to optimize BASF's capital structure and to increase earnings per share. The shares will be cancelled, thus reducing the share capital of BASF SE accordingly. BASF completed their €3 billion share buyback programme for 2007 and 2008 ahead of schedule. This programme was announced in February 2007. From the beginning of 2007 until June 17, 2008 BASF bought back shares for €3 billion. A total of approximately 33.7 million shares were repurchased at an average price of €88.91. This corresponds to 7.1% of BASF SE's current share capital. The repurchased shares have already been cancelled or will be cancelled in 2008. The annual meeting also resolved a two-for-one stock split. Shareholders will receive an additional BASF share for each existing share at no added cost. The reorganization of the securities deposit accounts and the stock exchange listing will take place on June 27, 2008. The aim of the stock split is to make BASF shares available to an even broader spectrum of investors. Shares held in the form of American Depositary Receipts in the United States will be adjusted accordingly. In the course of the stock split, circulating share certificates which have become obsolete because they still bear the name of ‘BASF Aktiengesellschaft' will be cancelled and exchanged for shares exclusively held within the collective securities deposit system. Individual and collective certificates can be surrendered to an exchange agent or any other credit institution in the period from June 27 to September 30, 2008, in exchange for credit entries in collective securities deposit accounts. The exchange agents in Germany are all branches of Deutsche Bank AG.