Maersk share buyback plan may cap gains of bond holders
Prospects of ratings upgrade dim as it sells assets and distributes cash
Add BT as a preferred source
DeeperDive is a beta AI feature. Refer to full articles for the facts.
[COPENHAGEN] Debt holders in AP Moeller-Maersk are looking on as the world's biggest shipping company uses its excess cash to enrich shareholders in a strategy shift that threatens to cap its bond gains.
Chief executive officer Nils Smedegaard Andersen said last week he will start the Copenhagen-based company's first ever "formalised" share buyback programme, purchasing US$1 billion in stock, or about 2 per cent of Maersk's market capitalisation.
According to Nordea Bank, Scandinavia's biggest lender, the move means there's now no prospect of the ratings upgrade some bondholders had been hoping for.
Share with us your feedback on BT's products and services
TRENDING NOW
Ministry of Home Affairs Permanent Secretary Pang Kin Keong to retire
Shelving S$5 billion office redevelopment plan proved ‘wise’ as geopolitical risks mount: OCBC chairman
Richard Eu on how core values, customers keep Singapore’s TCM chain Eu Yan Sang relevant
China pips the US if Asean is forced to choose, but analysts warn against reading it like a sports result
