Biofarm proposed a buyback price of 0.2 to 0.4 lei (EUR0.044 to EUR0.088) a share, valuing the entire 10% stake at RON21.9 to RON43.8 million.
At around 10:50 am Thursday, Biofarm traded down 0.93% at RON0.2972 a share.
The company plans to cancel all repurchased shares and to lower the company’s share capital proportionally.
The proposal will be discussed at a shareholder meeting on April 17.
Also on April 17, the stockholders are expected to vote on a Board’s proposal not to distribute dividends from the 2013 net profit.
Biofarm reported a net profit of RON25.6 million in 2013, up 21.7% on the year. Sales rose 12% to RON117.6 million.
The company is 54.28%-owned by investment funds SIF Banat-Crisana (SIF1.RO) and SIF Muntenia (SIF4.RO). The Romanian financial supervisory authority ASF recently called on the two funds to launch a takeover bid for the remaining shares in Biofarm. (EUR1=4.5102)