The Board of Invalda AB proposes for the General Meeting of shareholders, to be held on 9 July, to consider and approve the Policy of payouts to shareholders and the draft of conditions for the purchase of own shares.
Invalda will become the first company whose shares are listed on the Vilnius Stock Exchange, with an officially approved Policy of payouts to the shareholders. In the draft of the policy for 2008 – 2010 it is planned to pay out to the shareholders LTL 127.7 m (LTL 3 per share if calculated according to the present amount of shares). Dividends, funds paid out during the purchase of own shares, other payouts are considered to be the payouts to the shareholders according to this policy.
“When proposing to approve the policy of payouts to the shareholders while financial markets are facing major challenges, we seek to prove our strategic provision that in spite of the volatile market situation we first of all focus on the interests of our shareholders” –Darius Sulnis, President of Invalda, said.
According to D. Sulnis, this policy is a stage of the consistent enlargement of the Invalda group. “The policy of payouts to the shareholders increases the transparency of the company and provides investors and society with the ability to predict the company’s future. Moreover, it officially determines the company’s responsibility for the shareholders. These are the key aspects of shareholders value creation” – D. Sulnis said.
The other issue to be discussed by the General Meeting of shareholders is the purchase of up to 10 percent of own shares paying from LTL 14 to LTL 30 per share. The reserve of LTL 69.13 m, formed by General Meetings in 2007 and 2008, is to be used. The term of 18 months from the day of the General Meeting for the purchase of own shares by announcing voluntary takeover bid is proposed to be set.
The President of Invalda D. Sulnis emphasized that the company has purposely formed the reserve for the purchase of own shares in the last two years. The decision to purchase shares provides shareholders with the opportunity depending on personal goals, to either proportionally increase their part in the company or to use receivable money, which might be an important consideration for considerable part of the investors.
About the Invalda financial group
The Invalda financial group focuses on asset management as well as private and investment banking. The goal of the group – successful activity development, steady long term growth and high long term financial return to the shareholders. The asset management activity currently concentrates on finance, real estate, pharmacy, furniture manufacturing and roads and bridges construction.
Invalda AB shares have been listed since December 19, 1995 (then – at National Stock Exchange); from the January 1, 2008 the company’s shares have been on the Main List of Vilnius Stock Exchange.
Part of consolidated unaudited net profit of Q1 2008 attributable to the shareholders of Invalda AB has increased 3 times and amounts to LTL 30.5 m, compared with Q1 2007, when the net profit constituted LTL 10 m. The whole consolidated unaudited net profit of the Invalda group for the Q1 2008 reached LTL 29.7 m, i.e. 130 percent more, compared with LTL 12,9 m of the same period in 2007.