The Annual General Meeting (AGM) Zentiva held yesterday gave authorization of the Management Board to execute own share purchases by any means up to 10% of the company’s registered capital in the next 18 months. The price range for the purchases was set between CZK 1 and CZK 2,000 per share. The AGM has also approved CZK 11.5 dividend per share on the 2006 results, in-line with the management board’s proposal, which will be payable on 11 July 2007, and record date will be on 4 July 2007.
Our view: We see the news as neutral, as the authorisation for own share purchases was extended from the last year and the approved dividend is in-line with our and market's expectation. Zentiva currently holds 126,000 own shares, representing 0.33% of the registered capital, which leaves ample room for the own share purchases. However, we see that after the acquisition of Eczacibasi Zentiva will buy shares mainly to its employee share option program unless share price turns well below the fair value considered by Zentiva.