Digi Communications has informed its shareholders and the market in a press statement that, by decision of 7 June 2018, the company’s Board of Directors decided upon the initiation of the class B shares buyback program in accordance with the resolutions of the company’s general shareholders meeting (GSM) of May 2, 2018, through which the Board of Directors was authorized to acquire, for a 12-month period starting with the date of the GSM and until, including, 1 May 2019, a maximum of up to 10% of the issued class B share capital at the close of trading on the Regulated Spot Market of the Bucharest Stock Exchange on the date of the AGM, subject to a maximum price per class B share equal to the average of the highest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Regulated Spot Market of the Bucharest Stock Exchange plus 5% (maximum price) and to a minimum price per common share equal to the average of the lowest price on each of the five trading days prior to the date of acquisition, as shown in the Official Price List of the Regulated Spot Market of the Bucharest Stock Exchange minus 5% (minimum price) – the program.
The program will be performed and implemented in line with the applicable legal rules and regulations relating to the buyback programs, specifically article 5 from the European Parliament and the EU Council’s Regulation no 596/2014 regarding the market abuse and the Commission Delegated Regulation (EU) 2016/1052, as well, in compliance with the applicable volume and price thresholds.
It is intended that the class B shares to be repurchased under the Program to be used for the purpose of the several stock option programs as already or to be further approved by the company.
The company’s Board of Directors has chosen BRD Groupe Société Générale S.A. as the broker handling the buyback program.
At the initiation of the Program, it is intended starting as of 11 June 2018 to acquire a total volume of 500,000 class B shares of the Company that can be further adjusted within the abovementioned limits by decision of the Company. During the buy-back process, the Company will comply with the volume and price thresholds as set out by the Delegated Regulation (EU) 2016/1052.
The company has a market capitalization of RON3 billion, after its shares have decreased by 26% since the start of 2018, amid deals worth RON29.8 million.
Digi Communications reported a net profit of EUR62 million in 2017, fivefold higher than a year before, and its revenue rose 8.75% year-on-year to EUR916.5 million.
The company has recently approved a decision to pay out a dividend of RON0.35 per share, which translates into a total RON35 million to be distributed to its shareholders.