Softline Holding announced an increase to the pecuniary amount allocated to its previously announced GDR buyback programme (the “Programme”).
As previously announced, the Company intends to continue buying (either directly or through its subsidiary) GDRs on market and hold them in treasury. The purpose of the Programme is to fund the Company’s long-term management incentive plan, as notified in the Company’s half year report on 30 November 2021, and additionally the long-term employee partnership program (“LTEPP”), and the employee share purchase scheme announced on 24 January 2022.
The overall pecuniary amount allocated to the Programme will now be up to US$100 mn (an increase from the earlier announced US$10 mn). All purchases of Shares and/or GDRs will be made by the Company or through a subsidiary, which has engaged a company within Sberbank group to act as an independent broker to execute any purchases pursuant to the Program.
The Programme will be conducted consistent with the general authority to repurchase GDRs granted by the Company’s Board of Directors held on 26 November 2021, and otherwise in accordance with applicable laws and regulations. The maximum number of GDRs that can be bought back under the Programme remains up to 10% of the Company’s issued share capital (no more than 18.3 mn GDRs) and the Company cannot own such GDRs for more than 2 years. The company will continue to fund the buyback programme from operations, and finance investments. As approved by the Board the Programme has one year duration starting from the date of approval. However, the Company intends to continue the Programme for the next few years.
Details of any purchases made under the Programme will be provided via RNS announcements and published on the Company’s website.
Igor Borovikov, The Founder and the Chairman of Softline Group, commented: “The demand for digital transformation and cybersecurity solutions around the world is not decreasing. With our newly announced Long Term Employee Partnership Program, we are going to be the leading and the most attractive employer in our sector of the industry. With our shares fundamentally undervalued, considering our growth, portfolio, access to talent and markets where we operate, it is the right time to invest in our employees. I also see this as the right time to increase my shareholding in the company that is confident in its ability to grow, has significant investment capacity after the IPO, and is consistently executing on its three-dimensional growth strategy and is actively acquiring companies to support of its growth plans.”