Kernel to buy back up to 19.2 mln shares for $250 mln within two years

KYIV. Aug 31 (Interfax-Ukraine) – Kernel Holding S.A. (Luxembourg), the holding company of Kernel agro-industrial group, at an extraordinary meeting of shareholders decided to buy back up to 19.2 million of its shares for a total of $250 million within two years, while the purchase price of shares must be no less than PLN50 and no more than PLN65.

The agricultural holding announced the results of the shareholders’ meeting held on August 30 at the Warsaw Stock Exchange.

The report notes that the decision to buy back its shares was made as the company and its subsidiaries have accumulated significant liquidity and do not have any new attractive investment opportunities in the short term. At the same time, the agricultural holding clarified that the ratio of its net debt to EBITDA as of March 31, 2021 at 1.4x is a comfortable indicator for doing business.

"The shares bought back will subsequently be canceled, retained, sold or used for such lawful purposes as the board of directors deems appropriate," the company said in a statement.

According to the report, Kernel’s shareholders have authorized the company’s board of directors to implement the resolution in whatever format they deem necessary, including allowing them to enter into an agency agreement with a selected investment firm to buy back shares.

In addition, the shareholders at the meeting approved a plan to encourage the top management of the company by ratifying agreements on put options with them.

"The company, as a buyer, intends to enter into put options regulated by Luxembourg law, according to which it grants the beneficiaries of put options the right to sell to it and require it to acquire a total of up to 2.792 million ordinary shares of the company without par value, representing 3.323% of the total charter capital," the report says.

The period of validity of put options is set from November 1, 2024 to December 31, 2025.