Avangard EGM approves of share buyback plan

Avangard (AVGR LI) shareholders approved of buying back up to 5.0 mln GDRs (7.8% of share capital) at an EGM on Wednesday. Avangard’s board can conduct the purchases at the going market price within a range of USD 1-20/GDR (vs. last deal price at USD 6.25/GDR) at any time in the next three years. Yegor Samusenko: We stick to our view that Avangard’s management has strong incentive to inflate the company’s share price via the buyback program. Avangard’s multiples will likely serve as a benchmark for valuing parent Ukrlandfarming (holder of 77.5% of Avangard), which plans to make a private placement in winter or spring.