Sonova launches new $1.5 billion share purchase program

Posted 29 March, 2022

The new program, which will be launched in April and whose duration will reach 36 months, will be financed by free cash flow and by additional borrowings.

The hearing aid manufacturer Sonova continues to pamper its shareholders by launching a new share buyback program endowed with 1.5 billion francs. The previous one has just been completed and has enabled the Stäfa group to acquire approximately 2 million own shares for an amount of 699.3 million.

Announced in May 2021 and capped at 700 million francs, the recently finalized share buyback program concerned 3.125% of the securities in circulation, the Zurich company said on Tuesday. The average purchase price was CHF 347.50. The registered Sonova closed Monday at 364 francs.

The new program, which will be launched in April and whose duration will reach 36 months, will be financed by free cash flow and by additional borrowings. It will not prevent Sonova from reaching “eventually” the target ratio between net debt and gross operating profit (Ebitda) of 1.0-1.5x.

The Zurich-based company says it is confident in its ability to generate cash, maintains a prudent financial policy and expects to have sufficient funds to invest further in its growth initiatives.

All of the shares bought back under the two programs are intended for destruction, subject to the green light of the general meeting, the press release specifies.

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