MHP issues buyback program update

Myronivsky Hliboproduct (LSE: MHPC LI) disclosed yesterday that the total amount of the company’s bought back shares increased by 1 pp to 3.74 mln, at an average price of USD 13.71/GDR (ca. 10% below the current market price), reducing the stock’s free float by 3 pp to 19.3% since June 2010. Ruslan Patlavskyy: As MHP is the second most liquid Ukrainian agricultural stock, with 6M daily turnover of USD 1.47 mln, the continued execution of the buyback program should have only a marginally adverse effect on the company’s market liquidity. Given the company’s aggressive CapEx plans and our estimated 50% upside potential for the stock, we see a high likelihood the shares might be bought for future resale, in line with the buyback program guidelines.