Electroarges proposed a buyback price of up to 0.8 lei (EUR0.1805) a share, 13.47% higher compared to the latest market price of RON0.705 a share. At that price, the 10% stake is valued at RON6.4 million. The current market price values the stake at RON5.7 million.
At the end of the buyback program, which is scheduled to last 12 months, Electroarges will decide whether to distribute the redeemed shares to its employees and managers or to cancel them and subsequently reduce the company’s share capital.
Electroarges is 24%-owned by local entrepreneur Catalin Chelu. The home appliance producer reported first-half sales of RON84.7 million, 16% higher on the year. The company’s profit fell 12% to RON5.6 million. (EUR1=RON4.4306)