MHP's board approves 2.5% share buyback

Mironivskiy Hliboproduct’s (MHPC LI) board approved buying back up to 2,769,250 ordinary shares in the company (not exceeding 2.5% of issued share capital), at a meeting on September 8, the company said in a press release yesterday. The buyback program will be carried out for a period of no more than a year after it receives shareholder approval – an EGM has been scheduled for October 5. MHP plans to use some of the shares purchased under the program for compensation and incentive program; non-used shares will be held in treasury until their resale within the next three years. Andriy Gostik: Mironivskiy Hliboproduct’s price has been on an upward trend since March, gaining some 245% for the period. We think the effect of the proposed buyback on the stock price will be quite limited due to the buyback’s low volume and will probably be indiscernible in the general uptrend. The buyback price, though not yet announced, is expected to be somewhat lower than current market price, as it will be determined as an average price for a certain period preceding the buyback announcement.