QIAGEN  announced a plan to return up to approximately $300 million (maximum EUR 273 million) to shareholders through a synthetic share repurchase that combines a direct capital repayment with a reverse stock split.

QIAGEN has decided to implement the maximum $300 million value of the mandate given at the Annual General Meeting in June 2023, where shareholders gave virtually unanimous approval for the related resolutions. This approach is designed to return cash to shareholders in a more efficient way than through a traditional open-market repurchase program. It would also enhance earnings per share (EPS) through the reduction in outstanding shares.

“QIAGEN begins 2024 in a position of strength and positioned for solid growth due to our differentiated portfolio of molecular testing solutions that are helping to advance science and improve outcomes for people around the world,” said Thierry Bernard, CEO of QIAGEN. “This repurchase program is a signal of our conviction in QIAGEN, as we continue to focus, invest in profitable growth and create value for our shareholders and other stakeholders.”

Roland Sackers, Chief Financial Officer of QIAGEN, said: “A synthetic share repurchase relies on a well-known and proven structure utilized by many Dutch companies to enhance value. After the share repurchase is completed in early 2024, we will continue to have a solid investment-grade profile and a healthy balance sheet combined with strong cash flow generation. We are reviewing other options to create greater value, such as targeted M&A opportunities, that support our profitable growth trends.”

This type of share repurchase involves three steps: 

1. The par value of QIAGEN’s common shares (EUR 0.01 per share) will be increased through a transfer from the Share Premium Reserve (included in “Additional Paid-in Capital” on the Company’s balance sheet) to allow for the capital repayment to shareholders.
   
   
2. A reverse stock split will consolidate shares.
   
   
3. The par value will be reduced back to the original level of EUR 0.01 per share and the capital repayment will be paid out directly to shareholders (as of the record date, and where applicable after conversion into U.S. dollars). 

The synthetic share repurchase will become effective on January 29, 2024, and will be settled in line with market convention in the subsequent days. Further information on this process will be announced before implementation.