INVL Technology, a company that invests in IT businesses, in the first use of Dutch auction rules on the Lithuanian capital market, bought back 86 370 its shares via the stock exchange at the maximum price of EUR 2.50 per share.
“Likely the company’s shareholders put a higher value on their shares, thus we ended up buying back fewer of our shares than we had planned,” says Kazimieras Tonkūnas, the Managing Partner of INVL Technology.
The share buyback took place from May 6 to May 20. An allocation of EUR 500,000 was envisaged for repurchasing shares, using part of a EUR 9.8 million reserve formed in 2015 for that purpose.
The company had authorisation to acquire a maximum of 200,000 of its own shares. The maximum purchase price was EUR 2.50 per share. Before the announcement of the buyback, the price of INVL Technology’s shares on the stock exchange was EUR 2.28.
The purpose of the share repurchase is to meet obligations related to stock option programmes and other share allocations to employees of subsidiaries, and/or to reduce the company’s authorized capital by annulling acquired own shares. For the first time on the Lithuanian capital market, the share buyback price was set on a Dutch auction basis, i.e., all shares were purchased at the lowest price established by the exchange’s algorithm. Previously companies in Lithuania usually bought back shares at a fixed price.
Procedures for the acquisition of own shares were approved at a general meeting of the company’s shareholders held on 30 April. The company was given the right to acquire own shares for up to 10% of its authorized capital, with a time limit for such acquisitions of 18 months from the date of the decision of the shareholders’ meeting. The maximum purchase price per share is INVL Technology’s last published net asset value; the minimum is EUR 0.29. Since the acquired shares will not be sold, no minimum selling price or sale procedure was stipulated.
INVL Technology owns the cybersecurity company NRD Cyber Security, the GovTech and FinTech company NRD Companies, and the Baltic IT company Novian.
In mid-March this year, the company announced that it had signed an agreement with the Zurich branch of M&A intermediation service provider Corum Group’s Luxembourg-based unit Corum Group International, to advise and serve as M&A intermediary on the sale of the company’s portfolio of businesses.
INVL Technology, which is managed by INVL Asset Management, the leading alternative asset manager in the Baltics, is a closed-end investment company which must exit its investments no later than mid-July 2026 and distribute the money to shareholders.
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