OREANDA-NEWS. July 08, 2010. Ukrainian brewer Slavutych (UX: SLAV UK) plans to buyback 6.5% of its shares, Interfax reported yesterday, citing a company press release. The buyback, which was approved at a shareholder meeting on June 25, is to be made at UAH 2.1 per share from June 26 to July 26. According to the State Securities & Exchange Commission, BBH controls 92.8% of Slavutych shares.

Concorde Capital: based on our estimates, this will decrease Slavutych’s free-float to 0.7% which will greatly decrease its liquidity. While we estimate the company’s shares to be considerably undervalued (trading at 3.7x 2010 EBITDA vs. 10.3x median for EM peers), the risk of the complete loss of liquidity negates the benefits of potential upside, in our view. The buyback price of UAH 2.1 implies ~15% discount to the current market price.