Tigar has announced an offer of treasury shares to existing shareholders. The decision to sell 22,432 treasury shares (1.3% of total outstanding shares) was reached at the last annual general meeting (AGM) in June. The shares will be offered at RSD 650 per share. The offer is valid from 30 July until 28 August 2009. The holder of record date was set at 23 July 2009.
Tigar’s intention to issue treasury shares became known after the AGM in June and speculation on the price at which the offer would be launched proved to be correct. We expect a neutral trading impact on the stock since the holder of record date has already passed. The firm’s decision was necessitated by current Serbian regulations, according to which corporate entities are not allowed to hold treasury shares for more than two years. Tigar is currently trading at RSD 738 level, and the price from the offer has a discount of 12%. Thus we expect most of shareholders will accept the offer.