On November 16th 2020, the Management Board of KRUK S.A. released Current Report No. 42/2020, in which it announced the acceptance of tenders to sell KRUK shares submitted by the Company’s shareholders in response to the buyback offer, carried out between October 19th and November 13th 2020. The shareholders had resolved that the buyback would cover up to 271 thousand shares, for an amount of PLN 95m.
According to a notification from Santander Bank Polska S.A. – Santander Brokerage House, which was accepting the tenders on behalf of the Company, during the tender acceptance period 1,659 tenders to sell KRUK shares were accepted, for a total of 17,312,434 shares in the Company. 393 individual tenders for more than 29 and fewer than 70 shares, making up a total of 17,349 shares, were accepted, and taking into account tenders submitted multiple times from one account (6 tenders for a total of 306 shares), 387 tenders for a total of 17,043 shares were preferential. The number of individual tenders for no more than 29 or no fewer than 70 shares was 1,269, covering a total of 17,295,391 shares. Upon pro rata reduction of tenders for no more than 29 shares and no fewer than 70 shares, an average reduction rate of 98,44% was set. Tenders for no more than 29 shares were not allotted any shares, while tenders for no fewer than 70 shares each were allotted a total of 270,613 shares. The scheduled settlement date is November 18th 2020.
‘In 2019, the KRUK Group reported consolidated net profit of PLN 277m, while KRUK S.A.’s separate profit came in at PLN 386m, of which PLN 95m was allocated by the shareholders, as recommended by the Management Board, to the share buyback. 91% of shares were submitted to the program by shareholders. We wanted as many investors as possible, including minor ones, to benefit from the distribution. With them in mind, we have introduced an additional subscription threshold from 29 to 70 shares. 387 of the 1,659 tenders submitted by our shareholders benefited from it.’ comments Piotr Krupa, President of the Management Board of KRUK S.A. ‘Being a listed company since 2011, KRUK has so far distributed to its shareholders an aggregate amount of PLN 288m between 2015 and 2019. The distribution of income via the buyback of shares will bring this amount up to PLN 383m. We have always been responsible in our business approach, seeking both to grow optimally and to share the rewards of that growth with those who invest in our organisation. Although this has been an extraordinary year, we have again managed to reward our shareholders. The secure payout is possible on the back of our conservative financial and liquidity policy, followed consistently for many years, which has now proved its worth. Moreover, after the third quarter, with net interest-bearing debt to equity of 0.9x and net interest-bearing debt to cash EBITDA of 1.6x, we are also well placed to step up our investing activity, especially when the pandemic-induced uncertainty begins to subside,’ concluded Piotr Krupa.