Kernel announces tender to repurchase its 4.3% shares

26 October 2021

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.