(Adds details, comment from CEO)
ZURICH, March 25 (Reuters) - Swiss engineering company ABB said on Thursday it will launch a share buyback worth around $4.3 billion as it seeks to return proceeds from the sale of 80% of its Power Grids unit to Japan’s Hitachi.
ABB, which makes industrial robots and drives, had previously completed a $3.5 billion share buyback.
“The Board confirms ABB’s intention to return $7.8 billion of cash proceeds from the Power Grids divestment to shareholders through share buybacks,” ABB said in a statement.
“The program is expected to be launched in April 2021.”
Since the Power Grids disposal last year, ABB has said it is looking to sell off three of its other businesses as it seeks to become a less-complicated company.
ABB has picked Goldman Sachs and Credit Suisse to help with the divestiture of its turbocharging division, one of the businesses on the auction block, which could raise up to $2 billion, Reuters reported this month.
Chief Executive Bjorn Rosengren told shareholders at ABB’s remotely-held AGM on Thursday that it will continue with “active portfolio management” and expressed an interest in pruning and selling off businesses to focus its activities. (Reporting by John Miller and John Revill in Zurich; Editing by Elaine Hardcastle and Alexander Smith)