OREANDA-NEWS. April 09, 2012. The Board of Invalda AB, one of the largest Lithuanian investment companies, proposes to allocate all retained earnings in the amount of 269.1 million litas (€ 77.9 million) to the reserve for own shares acquisition and initiate a buy-back of its own shares.

„The previous large Tiltra Group AB and Sanitas AB transactions demonstrated that Invalda is capable to create value to shareholders, so the Company should continue investment activities. However, we propose to form a reserve for own share buy-back in order to pay back part of the excessive funds allowing the shareholders to decide for themselves whether to sell the shares, “- said Dalius Kaziunas, the president of Invalda.

According to him, the proposed share buy-back shall help to reduce the difference between the Company’s current share price and its net asset value.  

Shareholders have been proposed to make a decision to acquire up to 10 per cent of own shares, paying for each of them from 1 € to 5 € as well as to delegate the Board of Invalda to organize the buy-back. The decision will be valid for 12 months.

„The particular decisions about the purchase prices and volumes will be made by taking into consideration the prevailing market conditions, - told D. Kaziunas. – If the need arises, the size of formed reserve is sufficient to accommodate a few buy-backs. “

In 2011, 209 million litas (€ 60.5 million) audited net profit attributable to the parent Company‘s shareholders was earned by Invalda group. The parent company Invalda AB earned profit of 274.9 million litas (€ 79.6 million).  The sale of Sanitas AB and Tiltra Group AB shares and the successful activity of Vilnius baldai AB contributed to the Company‘s profit.

It is also planned to elect a new Board member in the general shareholders meeting, as D. Kaziunas resigned from the Board. He stays as the CEO of the Company.

„The Board is responsible for strategic management, and CEO should ensure organization of Company’s activities and implementation of its goals. Therefore, my resignation from the Board should ensure the right balance of functions between the managing bodies of Invalda“, - said D. Kaziunas.

According to him, CEO subordination to the board ensures his accountability and control, which leads to more effective management process.

The new Board member shall be elected from candidates proposed in accordance with the procedure prescribed by law.