Transilvania Investments plans to launch a share buyback program that may include THR Marea Neagră shares

Transilvania Investments (TRANSI) shareholders are convened on March 10 to approve the initiation of a buyback program for up to 185 million own shares, equivalent to 8.6% of the share capital, according to a report published yesterday on the Bucharest Stock Exchange (BVB) website.

The shares will be repurchased at prices ranging between 0.3 lei and 0.5 lei per share, with the total value of the program reaching up to 92.5 million lei. Yesterday, in the second half of the trading session, the fund's shares were trading at 0.396 lei per unit.

According to the BVB report, the shares will be repurchased from the market and/or through public tender offers, including public tender offers conducted through exchange offers. "If the company carries out, as part of the buyback program, public tender offers through exchange offers, it will offer, in exchange for up to 150 million of its own shares, shares of THR Marea Neagră, listed on the regulated market operated by BVB, standard category, and cash for the difference," the notice states.

The buyback program will have two purposes:

(i) reducing the share capital by canceling up to 175 million shares, and

(ii) distributing ten million shares free of charge to board members, the executive management, and other individuals as part of a Stock Option Plan.

"The implementation of the buyback program will be carried out using the company's own resources, which, to avoid any misunderstanding, will include shares held by the company in THR Marea Neagră (in the case of public tender offers conducted through exchange offers, in accordance with applicable legal provisions) and cash," the notice further states.

As of mid-last year, Transilvania Investments held nearly 70% of THR Marea Neagră.

Also, at the March 10 meeting, shareholders of the alternative investment fund will consider the contracting by Transilvania Investments of one or more financing agreements totaling up to 200 million lei, for a period not exceeding five years.

The financing, which may be obtained from banks through one or more contracts, will be used for investment purposes by Transilvania Investments.

"The company will issue and/or establish any types of guarantees and/or mortgages deemed necessary, useful, and/or appropriate by the executive management in relation to the financing," the BVB report further states.

For the previous year, Transilvania Investments reported a preliminary net profit of 105.9 million lei and net assets of 1.88 billion lei. The market valuation of the alternative investment fund stands at 845 million lei.