CNH Industrial Announces Delisting from Euronext Milan and Share Buyback Program
CNH Industrial N.V. has made the decision to delist its ordinary shares from Euronext Milan and concentrate its listing exclusively on the New York Stock Exchange (NYSE). The move comes after a careful review of trading volumes on the two exchanges, with the majority of CNH stock trading shifting to the NYSE since the spin-off of CNH's On-Highway activities and the creation of Iveco Group. The company believes that a single US listing will better align with its business profile and investor base, while increasing liquidity and simplifying compliance requirements.
The delisting process will be initiated with an application filed to Borsa Italiana, and CNH Industrial expects the delisting to take effect no earlier than 45 days after the publication of Borsa Italiana's notice. The company plans for the single listing on the NYSE to be effective at the beginning of January 2024.
In addition to the delisting announcement, CNH Industrial has approved a share buyback program worth up to $1 billion. The program will run from November 8, 2023, to March 1, 2024, and aims to optimize the company's capital structure and offset potential volatility resulting from the delisting. The buyback program will be funded by the company's liquidity.
CNH Industrial expresses gratitude to Euronext Milan for being its listing venue for over 10 years and looks forward to its continued presence on the NYSE.
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Implications of CNH Industrial's Delisting and Buyback Program for New Businesses
CNH Industrial's decision to delist from Euronext Milan and focus on NYSE could be a game-changer for new businesses. The move, a result of a detailed analysis of trading volumes, indicates a strategic shift towards markets that better align with the company's business profile and investor base. This could inspire new businesses to consider similar strategies, focusing their listings on exchanges that best match their operational and investor profiles.
Increased Liquidity and Simplified Compliance
CNH's move promises increased liquidity and simplified compliance requirements - two critical factors for new businesses. The decision could set a precedent for startups, encouraging them to streamline their operations and focus on markets that offer better liquidity and less complex compliance norms.
Share Buyback Program
Furthermore, CNH's $1 billion share buyback program, designed to optimize capital structure and counter potential volatility from the delisting, serves as a lesson in proactive financial management. New businesses may learn from this, understanding the importance of robust financial strategies to navigate market changes and maintain stability. In conclusion, CNH's strategic moves offer valuable insights for new businesses, emphasizing the importance of market alignment, liquidity, simplified compliance, and sound financial management.