Maersk Begins $2 Billion Share Buyback Amid Shipping Challenges
(Reuters) -Maersk said on Wednesday it has initiated a share buyback program of up to 14.4 billion Danish crowns ($2.01 billion), which will be executed over a period of 12 months.
The Danish shipping company had suspended its buyback program in February last year due to market uncertainties caused by disruptions in the Red Sea.
Attacks on vessels in the Red Sea by Iran-aligned Houthi militants have disrupted a shipping route vital to east-west trade, with prolonged re-routing of shipments pushing freight rates higher and causing congestion in Asian and European ports.
Maersk continues to divert vessels away from the Gulf of Aden and Red Sea and toward the southern tip of Africa despite Yemen's Houthis announcing they will curb their attacks on ships.
The shipping company had said one-third of its container volume was impacted by Red Sea disruptions.
The first phase of the buyback program will run from Feb. 26 up to Aug. 6 and the shares to be acquired will be limited to a total market value of 7.2 billion Danish crowns, the company said.
($1 = 7.1577 Danish crowns)
(Reporting by Rishabh Jaiswal; Editing by Shailesh Kuber in Bengaluru and Krishna Chandra Eluri)
