Kernel seeks to approve buyback program of 23% of shares at EGM
Ukrainian sunflower oil producer and grain trader Kernel (KER PW, KERPW) announced that it was seeking of approval of a share buyback of up to 19.2 mln shares (or about 22.8% of total shares outstanding) with a price range of PLN 50 – PLN 65 for a period of 2 years on the agenda of its EGM on Aug. 30, according to the company’s report published on July 30.
Andriy Perederey: The total spending on this buyback will amount to USD 250-325 mln, or 34-44% of our estimate for Kernel’s FY2021 EBITDA, we calculate.
The company’s operating results increase and the strong surge of the company's EBITDA results in FY2021 drives the company's debt burden to comfortable levels. Also, the company's moderate CapEx program frees up significant liquidity amounts. In case the company's shares buyback program is approved, we expect that the company’s shares will be traded in the planned buyback range.