(2018-10-15) Egytrans share buyback subscribed 1.3x; analysts recommend hold Earlier this month, Egytrans (ETRS) , a leading provider of logistics and transportation solutions in Egypt, opened its buyback offer to buy back 2.2 million shares through the tender route at a fixed price of EGP 7.2 per share for an aggregate amount of EGP 15.8 million.
“The Board at Egytrans believes that Company’s shares, at EGP 6.22, are undervalued and does not reflect the strong performance of the company and its competitive position in the logistics and transportation industry and its future potential,” said Abir Leheta Chairwoman of Egytrans adding that “ Egytrans board has taken the decision to repurchase Egytrans shares in the firm belief in the strength of the companys financial and market position and the potential future growth of the logistics and transport industry specifically and the positive outlook of the Egyptian economy generally.”
With a general recommendation of hold, by analysts , Egytrans share buyback received a conservative response with the offer being subscribed over 1.3 x the offer size for 2.2 million shares valued at EGP 15.93 million on the OPR market opened by the EGX at the end of the issue period, October 10th. Shareholders have tendered more than 2.8 million Egytrans shares on the EGX against the 2.2 million shares the company wants to repurchase at a tempting price of EGP 7.2 per share.
This response inspite of the fact that the buyback price was at a premium of 15% over the closing price of EGP 6.22 on October 1st , the last trading session before the buyback was announced. Egytrans shares, which ran up about 11% since then to EGP 6.90 at offer close, fell later amid general EGX decline. “ The low response to our bid is a positive indicator in the trust our shareholders have in the current performance of Egytrans and the positive outlook for our business. “ she adds that “ inspite of the drop in EGX generally the general message is that investors are confident in the recovery of the EGX and the future outlook “.
