With their knowledge and commitment, the employees of a service company decisively shape the corporate image as perceived by the customer and thus contribute to the company's success. Therefore, Fraport provides a work environment for its employees that rewards performance, offers individual development opportunities, and allows employees to share the company's profit. In this connection, the employee investment plan constitutes an important element of Fraport's performance and success-related compensation system. Under this program, employees every year have the individual option of purchasing Fraport AG shares at a reduced price instead of receiving a cash benefit. The employee investment plan is also available to employees of various majority-owned Fraport subsidiaries in Germany which have chosen to participate in the plan. The employee investment plan continues to prove very popular.
Since 2001 a total of around 1.6 million shares at a par value of €10.00 each have been issued to Fraport employees. The Employee investment plan available in the current year includes the choice between a cash bonus of €300 and Fraport shares in the amount of €360. Each employee of participating subsidiaries, also can buy shares in the total amount of up to €360 – depending on the subsidiary.
For the implementation of the 2023 employee participation program the Executive Board of Fraport AG Frankfurt Airport Services Worldwide (ISIN DE0005773303) decided to buy back own shares through the stock exchange. To fulfill all claims up to 75,000 of its own shares (this corresponds to approximately 0.081 percent of the capital stock) will be bought back.
The share buyback complies with rules and regulations set forth in Sec. 71 (1) No. 2 AktG (Aktiengesetz - German Stock Corporation Act). It serves solely to fulfil the obligations arising from the employee share capital program of Fraport AG Frankfurt Airport Services Worldwide. The total purchase price (excluding incidental costs) is up to around EUR 4,000,000.
The share buyback will begin on 5 June 2023 and will be completed by 30 June 2023. It will be carried out by an independent financial service provider in accordance
with the safe harbour rules defined under Article 5 of Regulation (EU) No. 596/2014 of the European Parliament and of the Council dated 16 April 2014, in conjunction with the provisions of the Delegated Regulation (EU) 2016/1052 of the Commission dated 8 March 2016. In particular, the financial services provider is required to execute the repurchase of shares as follows:
1. The shares are purchased at market prices in accordance with the aforementioned regulations. The shares are not purchased at a price higher than the higher of the price of the last independent trade and the highest current independent purchase bid on the trading venue where the purchase is carried out.
2. On any trading day, no more than 25 percent of the average daily volume of the shares on the trading venue on which the purchase is carried out is purchased. The average daily volume is based on the average daily volume traded during the month preceding the month, in which the publication of the share buyback program took place, that means, on the average daily trading volume in April 2023.