Kernel announces tender to repurchase its 4.3% shares

Ukrainian sunflower oil producer and grain trader
Kernel (KER PW, KERPW) launched  a tender on Oct. 26 to purchase 3.575 mln
of its shares with the price range of PLN 55 – PLN 60 per share, according to
its regulatory announcement. Kernel’s stock closed yesterday at PLN 64.1/share.
The tendered shares constitute 4.3% of the share capital of the company.

The company’s tender opening date is the Nov. 2 and the
tender closing date is Nov. 9. The maximum total consideration for the purposes
of this tender shall not exceed PLN 197 mln (or USD 49.5 mln), the announcement
said.

Kernel’s initiaitve in line with its plan to
repurchase up to 19.2 mln shares (or about 22.8% of total shares outstanding)
with a price range of PLN 50-65 over a 2-year period.

It is the second offering to buy back shares after
Kernel bought total 3.8% of its shares for USD 49 mln (at PLN 60/share, with a
bid range of PLN 55-65 in September.

Andriy Perederey: Taking into
account that the current market price exceeds by far the tender price ceiling,
this tender is likely to be much less successful for Kernel than the previous
one.