Stara Planina Hold: Buyback of Shares Aimed at Stabilizing Market

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Stara Planina Hold: Buyback of Shares Aimed at Stabilizing Market

Hydraulic Elements & Systems will hold a general shareholders' meeting on June 12, 2008, where shareholders will decide on the buyback of shares accounting for up to 3% of the capital of the company.

Other two companies included in the structure of Stara Planina Hold will also decide on the repurchasing of shares at their shareholders' meetings.

Profit.bg reached Nikolay Mitankin, Investor Relations Director of Stara Planina Hold, to comment on the issue.

„The planned buyback operations indicate a good attitude towards the investors and are expected to stabilize the market and limit the stock price fluctuations”, Mitankin told Profit.bg.

“The management of the company usually resorts to the repurchasing of shares when they believe that the stock of the company is undervalued. On the other hand, the planned repurchasing of 3% of the capital of the companies should not affect their capital flows. The specific parameters on the buyback of shares will be set by the board of directors of the respective companies, Mitankin added.

The term that will be set for the repurchasing of the shares will be no longer than five years, a statement published by the Bulgarian Stock Exchange (BSE) shows.

In case that the maximum amount of shares is not repurchased during the period set by the Board of Directors, the shareholders will be able to authorize the Board of Directors to extend that term.

The minimum price of the stock will be equal to the minimum average daily price for the last 52 weeks prior to the data of the repurchase, while the maximum price will stand at 75% of the average daily stock price, also in the last one year.

If there is lack of quorum, the meeting will be held on June 26, 2008 at the same place under the same agenda.

The final date for sealing deals in Hydraulic Elements & Systems' stock, which will allow the shareholders to exercise their voting rights at the meeting, is set for May 27, 2008.

No deals were sealed on the position of Hydraulic Elements & Systems today. The stock closed at a price of 21.45 leva per share yesterday.

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