In addition, both companies informed the National Securities Commission (CNV) that, in his opinion, Current share prices, currently at lows relative to 2018 peaks, do not reflect the real value of assets.
LThe share repurchase programs have “the objective of contributing to the strengthening of the shares in the market and reduce fluctuations in the price of the shares that do not reflect the value or the economic reality that the assets currently have, resulting in the detriment of the the interests of the Company’s shareholders.
“The Company decided to move forward with the Program taking into account the current national and international macroeconomic context, and Given the high volatility of the capital markets and taking into account the sharp deterioration in the value of Grupo Supervielle’s shares associated with the increase in Argentine risk [que] we believe that it does not reflect the real value of the Company’s assets, nor its future potential”, stated the financial institution in its letter to the CNV.
The repurchase of Supervielle shares will be for up to $2,000,000,000, while the number of shares to acquire “in no case will it exceed the maximum limit of 10% of the Company’s share capital”. In addition, the amount of the acquisitions “may not exceed 2% of the average daily transaction volume experienced by the Company’s shares during the previous 90 business days.”
It should be noted that Supervielle’s ADR, which reported a net loss in 2021, was close to US$33 in 2018, and today it is bought for less than US$2. The bank will pay up to a maximum of US$2.20 per ADR and up to a maximum value in pesos of $138 per share.
For his part, Cresud reported for his part that to make the decision he considered “the economic situation and the markets, as well as the discount that the current price of the shares has in relation to the value of the assets.” The role of agriculture reached US$20 in 2018, and today it is below US$5. In this case, Cresud will pay up to a maximum of US$6 per ADS (American DepositaryShare) and up to a maximum value in pesos of $200 per share, although the maximum price may be modified by the Board of Directors. The acquisitions will be carried out within a period of up to 120 days.
The repurchase of Cresud shares will be for up to $1,000,000,000, while the number of shares to acquire “in no case will it exceed the maximum limit of 10% of the Company’s share capital”. In addition, the daily limit for operations in the market will be “up to 25% of the average daily transaction volume experienced by the Company’s shares, jointly in the listed markets, during the previous 90 business days.”
Source: Ambito
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