Kernel announces tender to repurchase up to 4.68% of its shares
Ukrainian sunflower oil producer and grain trader Kernel (KER PW, KERPW) launched a tender on Jan. 19 to purchase up to 3.78 mln of its shares with the price range of PLN 50 – PLN 60 per share, according to its regulatory announcement. Kernel’s stock closed at PLN 55.5/share on Jan. 18.
The maximum number of shares to be purchased constitutes 4.5% of the share capital of the company (4.68% of total shares outstanding less 3.227 mln of treasury shares).
The tender’s opening date is Jan. 21 and the closing date is Jan. 27. The buyback price and the number of shares to be purchased will be published not later than Jan. 31 (indicatively), and the indicative settlement date is Feb. 3. The maximum total consideration allocated by Kernel for the purposes of this tender shall not exceed PLN 189 mln (USD 47.3 mln), the announcement said.
Kernel’s initiative is in line with its plan to spend up to USD 250 mln on repurchasing up to 19.2 mln of its shares (about 22.8% of total shares outstanding at the time of the program approval in August 2021) with a price range of PLN 50-65 over a 2-year period.
This is the third offering to buy back shares after Kernel bought 3.227 mln of its shares for USD 49 mln (at PLN 60/share) in September. The second buyback tender, announced in October, resulted in no offers from the shareholders.
Dmytro Khoroshun: Kernel has a good chance of executing this tender as its share price has dropped recently amid the geopolitical tensions.