Infinity has submitted documentation for two buyback programs to the ASF

Infinity Capital Investments, formerly SIF Oltenia, has submitted to the Financial Supervisory Authority the public offer document for the implementation of the two share buyback programs approved in the shareholders' meeting this spring, according to reports from the Bucharest Stock Exchange (BVB).

One program aims to buy back 40 million of its own shares, equivalent to 8.4% of the share capital, the shares to be cancelled to reduce the capital of the alternative investment fund. In April, shareholders approved that the buybacks be carried out at a price between the nominal value of 0.1 lei and 4.5 lei. At the end of last week, in the last part of the stock exchange session, Infinity shares were trading at a price of 2.43 lei.

Buybacks are theoretically beneficial for the share price and investor rewards because, through the acquisitions made, the share price can increase, and by canceling the bought-back securities, the issuer's profit per share and the potential dividend yield increase. However, after the hostile takeover of the company by the current Lion Capital and Longshield Investment Group, Infinity no longer granted dividends.

Also in the spring, the shareholders of the former SIF Oltenia approved the buyback of 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.

For the first three months of this year, the former SIF Oltenia reported a net loss of 9.1 million lei, compared to a profit of 29.8 million lei in the first quarter of last year. At the end of April, the company's net asset value amounted to about 3.4 billion lei, which compared to the fund's current stock market valuation of 1.15 billion lei, is equivalent to a trading discount of 66%.