Aegon to repurchase shares to neutralize impact of 2020 final stock dividend and share-based variable compensation plans
July 07, 2021, 18:00 CEST
Aegon announced today that it will repurchase common shares for an amount of EUR 133 million to neutralize the dilutive effect of both its 2020 final stock dividend and certain share-based variable compensation plans for senior management.
Shareholders were given the opportunity to choose between receiving the 2020 final dividend of EUR 0.06 per common share in cash or in stock. 58% of shareholders elected to receive the final dividend in stock. To neutralize the dilutive effect of the 2020 final stock dividend, Aegon will repurchase shares for an amount of EUR 72 million. These shares will be held as treasury shares and will be used to pay future stock dividends.
Aegon will also repurchase common shares for an amount of EUR 61 million in the context of share-based variable compensation plans for the years 2017-2021. This will be done to neutralize the dilutive effect of the shares already vested and those to be vested in the future for these plans. The repurchased shares will be held as treasury shares until allocation to the plan participants.
The repurchase of shares will commence on July 8, 2021 and is expected to be completed on or before August 25, 2021. Aegon will engage a third party to execute the transactions on its behalf. The common shares will be repurchased at a maximum of the average of the daily volume-weighted average prices during the repurchase period.
Weekly updates regarding the transactions will be available on aegon.com.