UBS makes changes to buyback program following Credit Suisse takeover

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[April 18, 2023]  ZURICH (Reuters) -UBS on Tuesday said it was making changes to its $6 billion share buyback program following its takeover of Credit Suisse.
 
UBS said it will use some of the shares for the takeover rather than cancelling them as originally planned after getting approval from the Swiss Takeover Board. 

Buildings of Swiss banks UBS and Credit Suisse are seen on the Paradeplatz in Zurich, Switzerland, March 20, 2023. REUTERS/Denis Balibouse/File Photo

Switzerland's biggest bank agreed in March to buy rival Credit Suisse CSGN.S for 3 billion Swiss francs in stock and agreed to assume up to 5 billion francs in losses, in a merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking.

UBS on Tuesday said it had decided against issuing new shares for the deal, but would instead use shares that had already been issued.

Under the deal, one UBS share will be exchanged for 22.48 shares in Credit Suisse, requiring a maximum of 178 million UBS shares to be used.

So far under the buyback - which was launched in March 2022 and will run until 2024 - 298.5 million shares have been bought back, equivalent to 8.47% of its stock, UBS said.

(Reporting by John Revill, Editing by Rachel More)

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