ZAGREB, June 28 (Reuters) - Croatia’s biggest telecommunications company Hrvatski Telekom (HT), majority owned by Deutsche Telekom, said on Wednesday it would start a four-year share buyback plan next week.
HT currently has a total of 81,888,535 ordinary shares. A maximum of 2.5 million shares are scheduled for acquisition, the company said in a statement.
“The maximum amount assigned to the programme is 500 million kuna ($77 million),” it added.
Deutsche Telekom owns 51 percent of HT.
HT also said that the price at which shares would be acquired must not be above or below 10 percent of the average market price per share during the previous trading day.
HT shares were trading at 178.41 kuna per share at 0930 GMT on the Zagreb bourse, or 1.13 percent up from Tuesday’s close.
“The shares are to be withdrawn without reducing the issued share capital... This will generate benefits for shareholders arising from the additional return of funds to shareholders, besides the regular dividend, and improvement of the company’s capital structure,” HT said.
It also said it plans to cancel the acquired shares at the end of each financial year.
$1 = 6.5224 kuna Reporting by Igor Ilic; Editing by Elaine Hardcastle