ASF approves Infinity's bid to buy back 42 million of its own shares

The Financial Supervisory Authority (ASF) has approved the public offering document under which Infinity Capital Investments wants to buy back almost 42 million of its own shares, equivalent to 9.8% of the share capital, according to a report by the issuer published yesterday on the Bucharest Stock Exchange (BVB) website.

The offer includes two buyback programs approved at Infinity's shareholders' meeting this spring. One program aims to buy back 40 million of its own shares, equivalent to 8.4% of the share capital, with the shares to be cancelled to reduce the capital of the alternative investment fund. The other program aims to purchase two million of its own shares for free distribution to the company's administrators, directors and employees in order to build their loyalty, according to performance criteria to be established by the Board of Directors of Infinity Capital Investments.

The shares will be redeemed at a unit price of 2.6 lei, between August 6 and 20, with Swiss Capital acting as the intermediary for the market operation.

The buybacks are theoretically beneficial for the share price and investor rewards because the purchases can increase the share price, and the cancellation of the redeemed shares increases the issuer's profit per share and the potential dividend yield. However, after the hostile takeover of the company by Lion Capital, Longshield Investment Group and a gallery of interposed funds, Infinity no longer granted dividends.

Recently, FIA Active Plus, an investment fund managed by Swiss Capital Asset Management and whose units are almost entirely owned by Lion Capital and Longshield Investment Group, reached an 11% holding in Infinity Capital Investments.

At the end of June, the company's net asset value amounted to about 3.7 billion lei, which compared to the fund's current stock market valuation of 1.1 billion lei, is equivalent to a trading discount of 70%.