Regarding the stabilized securities
AB “Ignitis grupė” (hereinafter – the Company) informs that the Company with the stabilisation manager AB “Swedbank” is currently evaluating the alternatives in respect of further actions related to the stabilised securities. Currently there are no decisions made on the potential acquisition of own shares or the sale of shares owned by AB “Swedbank”. The Company will inform about further actions in a separate notice.
The Company informs that on 5 October 2020, while executing its initial public offering (IPO) issued 20,000,000 new shares by increasing the authorized capital to EUR 1,658,756,293.81. On 7 October 2020 the newly issued shares were admitted to the Main Trading List of Nasdaq Vilnius and the global depositary receipts representing the Company's shares to the standard listing segment of the Official List of the United Kingdom Financial Supervision Authority (FCA) and to trading on the Main Market of the London Stock Exchange .
In order to maintain the market price of the issued securities and in accordance with the international market practice, the Company and Swedbank AB, in cooperation with Kepler Cheuvreux (together - the Stabilisation Managers), entered into agreements, which were first announced on 4 September 2020 together with the registration document.
Pursuant to the agreement with the Stabilisation Managers, they were entitled to jointly acquire no more than 10% of the newly issued shares or global depositary receipts representing the Company's shares, if the price of securities in the secondary market falls below the IPO offer price (EUR 22.50) for a 30 days period from the start of trading on the Nasdaq Vilnius and London Stock Exchanges (October 7, 2020) until 5 November 2020 (Stabilisation Period).
Accordingly, stabilisation measures (within the meaning of Article 3.2.(d) of the Market Abuse Regulation (EU/596/2014)) were carried out during the Stabilisation Period and the Stabilisation Managers acquired 631 938 ordinary registered shares issued by the Company and publicly traded on the Nasdaq Vilnius Stock Exchange and 1 368 061 global depositary receipts representing the Company's shares publicly traded on the London Stock Exchange. According to the terms and conditions of the agreement with the Stabilization managers, set out in the Company’s IPO prospectus, the Stabilization managers have the right from 7 May 2021 (inclusive) to dispose the stabilized securities in its sole discretion, but in the light of the evaluation of alternatives for the actions related to the stabilized securities, no actions are being executed.
At the same time, it shall be reminded that at the ordinary general meeting of shareholders held on 25th March 2021 it was decided to form a reserve of EUR 23 000 000 (twenty three million euros) for the acquisition of own shares. It should be noted that the Company's management has not yet made decisions to submit a proposal to the shareholders' meeting to make a decision on the acquisition of the Company's own shares. The formation of a reserve for the acquisition of own shares also does not mean that the acquisition of own shares will be carried out. The management board of the Company proposed to the general meeting of shareholders to make a decision on the formation of the said reserve in order to avoid the situation where the decision to implement the acquisition of own shares would have to wait for the next ordinary general meeting of the Company’s shareholders which could take place no earlier than the first quarter of 2022. Also, the decision to form a reserve for the purchase of own shares does not imply that it will be used.
For more information please contact:
Head of Public Relations at Ignitis Group
+370 620 76076