OREANDA-NEWS. July 02, 2010. MHP (LSE: MHPC LI) disclosed this morning that as of today it has purchased a total of 2,311,344 GDRs (1 GDR equals 1 ordinary share) at an average price of USD 13.36/GDR, in accordance with its share buyback program announced on May 19. MHP said the repurchased GDRs constitute about 2% of issued and outstanding shares. MHP plans to use the purchased GDRs for its compensation and incentive program; unused GDRs will be held in treasury until resold within three years.

Concorde Capital: in our view, the buyback program should only marginally reduce the stock’s liquidity, with MHP’s current free float of 20.3%. Worthwhile to highlight are recently announced plans of the company to run an SPO in 2011, which we believe conveys management’s confidence in the undervalued nature of the stock, which thus should be kept for future resale.