Enento launches a small share buyback program

Translation: Original comment published in Finnish on 12/19/2023 at 6:25 am EET.

The maximum amount to be used for the share buyback program launched by Enento's Board of Directors is 1 MEUR and the maximum number of shares to be acquired corresponds to a maximum of 0.23% of the total number of shares in the company. The purpose of the buyback program is to optimize the company's capital structure and the shares acquired will be canceled. We think that the program is a rational means of allocating capital due to the low valuation of the share, but significant shareholder value is not created due to the limited number of repurchases.

Second buyback program of the year

This is Enento's second share buyback program this year. In April, the company launched a share buyback program of 240,000 shares (just under 5 MEUR), representing approximately 1% of the company's share capital. These shares were also acquired to optimize the company's capital structure and the company has announced that it will cancel the shares. The average price of the shares acquired under this program was EUR 18.99.

Enento's Annual General Meeting in the spring authorized the Board of Directors to decide on the repurchase of up to 1,500,000 Enento shares, so after the current program (up to 55,000 shares) the Board of Directors still has the authorization to repurchase a significant number of own shares (1,205,000 shares). The buyback program will start on December 21, 2023 at the earliest and end on February 8, 2024 at the latest. The company has appointed Nordea to execute the share buybacks.