Prior to any share buybacks the Management and the Board of Telenor reviews the Group’s cash flow and capital allocation priorities, such as dividends, total shareholder remuneration, leverage and credit profile.
Historically, Telenor Group’s Annual General Meetings (AGM) have been held in May every year, where the Board of Telenor, if deemed appropriate, has asked shareholders for authorisation to acquire own shares for cancellation. Shares have then been repurchased throughout the year until May the year after, whereby the repurchased shares are cancelled, subject to approval by shareholders
Furthermore, the Norwegian state as Telenor’s largest shareholder, has historically participated in the share buybacks on a proportionate basis by way of redeeming such a number of shares so that the Norwegian state’s ownership in Telenor has been unaffected.
The shares that are repurchased by Telenor in the open market have immediate cash effect whereas the redeemed pro rata shares from the Norwegian state have been paid by Telenor simultaneously with the capital reduction, estimated to occur in July-August following the May AGM.