Moldova-Agroindbank Announces Strategic Share Buyback Plan
Moldova-Agroindbank's Strategic Share Buyback
Moldova-Agroindbank, recognized as the largest commercial bank in Moldova, is set to repurchase 3% of its shares. This initiative comes amidst the ongoing collaboration with its major shareholder, the prominent Baltic asset management firm Invalda INVL, which also has stakes in a consortium of investors including HEIM Partners Limited.
Purpose of the Buyback
The primary aim of this share repurchase is to facilitate employee incentive programs and enhance liquidity for existing shareholders. Vytautas Plunksnis, the Chairman of the Supervisory Board of Moldova-Agroindbank and Head of Private Equity at INVL Asset Management, emphasizes the importance of this initiative: "The buyback will establish a more efficient capital structure, leading to improved returns for our shareholders." This step is significant as it reflects the bank's commitment to its investors and employees alike.
Details of the Share Buyback
The buyback is set to occur between specific dates, following an approval process that involved the bank's General Shareholders' Meeting and its Supervisory Board. Moldova-Agroindbank will acquire 3,103,438 shares at a price of 74.56 Moldovan Leu (approximately EUR 3.88) per share, culminating in a total expenditure of around MDL 231 million (about EUR 12 million). This strategic purchase aligns with approved plans to enhance shareholder value.
Shareholder Dynamics Post-Buyback
HEIM Partners Limited, which holds a substantial share in the bank, is participating actively in the buyback program. After the transaction, its ownership stake in Moldova-Agroindbank will adjust from 41.09% to 39.88%, with Invalda INVL's indirect shareholding decreasing from 7.92% to 7.68%. This change reflects the dynamic nature of stakeholder involvement and confidence in the bank's future.
Moldova-Agroindbank's Financial Performance
In the financial year, Moldova-Agroindbank recorded a significant net profit of MDL 1.22 billion (EUR 64 million), marking a growth of 7.5% compared to the previous year. Moreover, the bank has been proactive in rewarding its shareholders, distributing MDL 757 million (EUR 39.4 million) in dividends over the span of 2021 to 2023. This solid financial performance positions Moldova-Agroindbank favorably for future growth and stability.
Contact for Further Information
For more details regarding this initiative, interested parties can reach out to Vytautas Plunksnis, the Head of Private Equity at INVL Asset Management, via email at vytautas.plunksnis@invl.com.
Frequently Asked Questions
What is the purpose of the share buyback by Moldova-Agroindbank?
The share buyback aims to enhance employee incentives and improve liquidity for shareholders.
What is the financial outcome of Moldova-Agroindbank in 2023?
The bank reported a net profit of MDL 1.22 billion, which reflects a growth of 7.5% compared to the previous year.
How will the share buyback affect HEIM Partners Limited's shareholding?
After the buyback, HEIM Partners Limited's shareholding in the bank will decrease from 41.09% to 39.88%.
What does the buyback price indicate about the bank's valuation?
The buyback price is set at 74.56 Moldovan Leu per share, indicating a strategic valuation approach amid the bank's enhanced capital structure.
Who can provide more information about the buyback?
Vytautas Plunksnis, Head of Private Equity at INVL Asset Management, is the designated contact for further inquiries.
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