Nyzhnyodniprovsky Pipe Supervisory Board Announces Share Buyout.
24 July 2008
Nyzhnyodniprovsky Pipe’s (NITR: U/R) supervisory board has decided to buyout 3.93 mln of the company’s shares (7.29% of the company’s charter fund). The buyback price will be UAH 206 (USD 40.79) per share. NITR shareholders will be able to sell their shares from September 13 to September 19, with final settlement to be reached by July 22, 2008. Eugene Cherviachenko: Apparently, Interpipe wants to soak up all the free float on the market in its preparations for an upcoming IPO. Currently NITR trades at USD 43.71 (UAH 220.74) per share, a 7.1% premium to the price of the buyout, which suggests good selling opportunity. On the other hand, there is still possibility that the market won’t give up (as we saw with Raiffeisen Bank Aval) and the company will have to increase the price of the buyout. We leave the stock under review but will be following news surrounding it closely.
