Lithuania’s investment company Invalda to buy back its own shares

Earlier on Monday, the company’s shareholders allocated 269.115 million litas for share repurchase.

Invalda traded for 2.535 euros on the stock exchange on Friday.

The company intended to buy up to 10 percent of its own shares (up to 5,755,794 stocks) through the stock exchange on 2-15 May, it announced through the NASDAQ OMX Vilnius Stock Exchange.

“The latest large-scale deals with Tiltra Group and Sanitas have shown that Invalda is able to create value for shareholders hence it should continue investing. However, we propose to establish a reserve for share repurchase so as to pay some free funds to the shareholders and to enable them to decide themselves on the sale of shares at the same time,” Invalda president Dalius Kaziūnas said early in April.

Share repurchase would also help narrow the gap between the market price of the company’s shares and the net value of its assets, he added.

“If necessary, the reserve will suffice for more than one share repurchase,” Kaziūnas said.

The company has never bought back its own shares before.

As of late 2011, Irena Ona Mišeikienė owned 25.52 percent of Invalda’s shares, and Vytautas Bučas held a 18.56 percent stake. Other shareholders included Lucrum Investicija with 10.38 percent, Darius Šulnis with 7.88 percent, Alvydas Banys with 8.29 percent, and Algirdas Bučas with 6.63 percent. The remaining shareholders owned a combined stake of 22.74 percent.

Invalda is quoted on the blue-chip Main List of the NASDAQ OMX Vilnius Stock Exchange.