The shareholders of INVL Technology, a company that invests in IT businesses, will consider the possibility of the company purchasing its own shares. The matter is included on the agenda of the general meeting of the company’s shareholders which will take place on 26 April this year.
The maximum number of shares that could be acquired is envisaged as no more than one-tenth of the company’s share capital, or 1.2 million shares. Buying back of shares would be possible for 18 months from the date of the decision. The maximum acquisition price would be equal to the company’s last published net asset value per share, and the minimum would be EUR 0.50.
After getting shareholders’ permission, INVL Technology would be able to use the possibility of purchasing its own shares if its management company makes such a decision. The possibility of a company buying back its own shares allows investors to sell shares on the basis of an offer submitted by the company.
It is also envisaged that own shares acquired by the company could be cancelled by a decision of the general meeting of shareholders or sold at the decision of the management company under the condition that their minimum sale price be equal to the acquisition price and that the manner of sale ensure equal opportunities for all shareholders to acquire the shares. Consideration of the share buy-back possibility is being proposed in light of the version of the Law on Collective Investment Undertakings that took effect on 1 February this year
Also to be considered by the shareholders meeting is the matter of approving a new version of the company’s articles of association. The new articles of association will take effect when, after being confirmed by the meeting of shareholders, they are approved by the Bank of Lithuania and registered at the Centre of Registers. The new version of the articles of association was prepared on the basis of changes to the Law on Companies and the Law on Collective Investment Undertakings.
The agenda of the April 26 meeting of shareholders will further include issues of the distribution of the profit that INVL Technology earned in 2018, approval of the 2018 audited financial report, and other matters.
According to INVL Technology’s audited results, the company’s equity at the end of 2018 was EUR 28 million, or EUR 2.30 per share, and increased 17.7 percent during the year. (At the end of 2017, INVL Technology had equity of EUR 23.8 million, or EUR 1.96 per share.) The company’s net profit for 2018, taking into account a revaluation of financial assets, was EUR 4.2 million or 3.2 percent larger than in 2017.
In July 2016, INVL Technology began to operate as a closed-end investment company. Its management was assumed by INVL Asset Management – a part of Invalda INVL, one of the leading asset management groups in the Baltics. INVL Technology will operate as a closed-end investment company until 14 July 2026.