AS Ekspress Grupp announces to its shareholders the share buyback in the period from 15 February to 6 March 2023, during which the shareholders have opportunity to sell Ekspress Grupp shares at the price of EUR 1,7 per share, that is approximately 8% above the current market price. The maximum amount of share buyback program is up to 1 million euros.
The buyback is carried out within the share buyback framework approved by the Ekspress Grupp shareholders at the general meeting in May last year, said Mari-Liis Rüütsalu, the Chairman of Management Board. “The purpose of the share buyback is to offer an attractive sales opportunity to those shareholders who want to sell, but who have been prevented by the small number and the volume of transactions with Ekspress Grupp shares on the Tallinn Stock Exchange. We aim to create additional value for our remaining shareholders through the buyback. The shares bought back will thereafter be cancelled or used for the other purposes e.g. for the option program,” added Rüütsalu.
To participate in the buyback, the shareholder shall submit an over-the-counter redemption offer in his/her custodian’s bank. The period of placing share redemption orders begins on 15 February 2023 at 10.00 and ends on 6 March 2023 at 15.00. Ekspress Grupp shall disclose the results of the buyback distribution in a stock exchange announcement on 7 March 2023 and the funds for the shares shall be received into the shareholder’s account on 9 March 2023. If the total amount of the received redemption orders exceeds EUR 1 million, Ekspress Grupp shall distribute the shares to be bought back among the offers submitted by the shareholders proportionally (pro rata). More detailed information and rules are disclosed in Ekspress Grupp stock exchange release.
The results of the buyback offer may impact the amount of dividends to be paid out of the Group’s profit for 2022. The Management Board will make a dividend proposal along with the notice to call an ordinary general meeting and will form its proposal on dividends based on previously approved dividend policy and the volume of the shares bought back under the share buyback offer. The Group will pay out at least 30% of the last year’s net profit as dividends under the condition that there will be sufficient monetary funds available to fund key operations and make new strategic investments. In case the economic environment significantly slows down, or the cash flows are lower than expected for other reasons, the Group may lower the dividend pay-out ratio or decide not to pay dividends.
AS Ekspress Grupp is the leading Baltic media group whose key activities include web media content production as well as publishing of newspapers, magazines and books. The Group also operates an electronic ticket sales platform and ticket offices and provides an outdoor screen service in Estonia and Latvia. Ekspress Grupp launched its operations in 1989 and it employs almost 1600 people.
AS Ekspress Grupp
Tel: +372 669 8381