INVL Technology Executes Share Buyback to Boost Value
INVL Technology Completes Share Buyback Initiative
INVL Technology, known for its strategic investments in IT businesses, recently completed a share buyback program, demonstrating a strong commitment to enhancing shareholder value. The company successfully purchased a total of 53,749 shares for EUR 188,121.50, excluding brokerage fees. This move highlights the company's proactive approach to managing its share structure and providing returns to its shareholders.
Details of the Share Buyback
Initially, INVL Technology had the authority to buy up to 150,000 shares during this buyback. However, the final count of shares offered for purchase stood at 53,749, with a set purchase price of EUR 3.50 per share. This strategic decision was made to not only invest in the company's equity but also to allow for future employee incentive programs.
Timeline and Execution
The buyback process initiated on 10 April 2025, employing the official tender offers market of the NASDAQ Vilnius stock exchange, concluding on 17 April 2025. The shares purchased are earmarked for settlement on 22 April 2025, aligning with the company's operational timelines.
The Rationale Behind the Buyback
According to Kazimieras Tonk?nas, Managing Partner of INVL Technology, the rationale behind acquiring its own shares is twofold. Firstly, it serves to facilitate employee incentive programs, fostering a sense of investment among staff. Secondly, the buyback allows the company to potentially reduce its authorized capital by annulling acquired shares, thereby enhancing the overall value for remaining shareholders. As the number of shares in circulation decreases, those that remain tend to appreciate in value.
Financial Details and Market Context
The company had set aside EUR 525,000 from its existing reserves to fund this buyback initiative, reinforcing its commitment to maximizing shareholder wealth. Prior to the buyback, INVL Technology's shares were trading at EUR 3.32 on the stock exchange, indicating a robust market context for this decision. Notably, the maximum purchase price during the buyback was established at EUR 3.50 per share.
Shareholder Approval and Compliance
The procedures enabling the company to repurchase its own shares were authorized in a shareholders' meeting held on 30 April 2024. This approval permitted acquisitions of up to 10% of the company’s authorized capital, with a specified timeframe of 18 months for such purchases. The minimum price per share was set at EUR 0.29, with no stipulated selling procedures since the acquired shares are not intended for sale.
INVL Technology's Broader Objectives
INVL Technology actively manages several key businesses, including the cybersecurity firm NRD Cyber Security and the GovTech and FinTech enterprises under NRD Companies. Additionally, they have interests in Baltic IT under the brand Novian. In a significant strategic move last year, the company engaged with Corum Group International to facilitate the potential sale of its business portfolio, reinforcing its focus on optimizing asset management.
Future Outlook and Firm Management
Managed by INVL Asset Management, a prominent alternative asset manager in the Baltic region, INVL Technology is structured as a closed-end investment company. This means it has a defined exit strategy for its investments by mid-July 2026, further emphasizing its commitment to returning capital to shareholders. The proactive steps taken through the share buyback reflect the company’s strategic foresight in navigating market dynamics while adhering to its investment policies.
Contact Information
If you seek more information about INVL Technology’s initiatives or share buyback processes, please reach out to:
Kazimieras Tonk?nas
Managing Partner, INVL Technology
E-mail: k.tonkunas@invltechnology.lt
Frequently Asked Questions
What is the purpose of INVL Technology's share buyback?
The buyback aims to enhance shareholder value and facilitate employee incentive programs.
How many shares did INVL Technology buy back?
INVL Technology bought back a total of 53,749 shares during this initiative.
What was the purchase price per share?
The shares were purchased at EUR 3.50 each, reflecting the established maximum price.
How will this affect shareholders?
The reduction in shares available in the market could lead to an increase in value for remaining shareholders.
What businesses does INVL Technology manage?
INVL Technology oversees cybersecurity, GovTech, FinTech, and Baltic IT companies, enhancing its diverse portfolio.
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