(374 CZK, 0,27%) announced the launch of a share buyback program for up to 6.4m (or 2%) of the overall number of the firm’s shares at a price ranging from CZK 150 to CZK 600 per single share. The buyback program should start today.
Telefónica CR has picked up UniCredit Bank AG, London Branch to implement the share buyback program. Unicredit is authorized to acquire up to 32,208,989 common shares at a price between CZK 150 and CZK 600 shares for a period of up to 5 years. Based on the above referenced decision of the Board of Directors, has instructed UniCredit Bank AG to acquire 6,441,798 ordinary shares, i.e. a total of 2% of the total number of ordinary shares of the company. UniCredit Bank AG, London Branch is authorized to use the services of an investment firm authorized to trade on Prague Stock Exchange. The purchase may start today MAY-16, according to the company official statement.
KBC's view: The management announced the share buyback earlier this month at the conference call to discuss the firm’s 1Q12 numbers. The announced buyback is part of the (up to) five-year program, which assumes buying back up to 10% of the firm’s overall outstanding shares. We expect a neutral market reaction to the news today.