Telefonija, the company operating in the IT and gas distribution sectors, announced yesterday that it would repurchase its own shares in the market. Up to 28,960 shares(5% of outstanding shares) will be bought back at the price that will be decided by CEO.
This action has to stabilize the market price, which has dropped by about 46% since the beginning of the year. According to the Law on Companies, a company can acquire up to 10% of its own shares, but is obliged either to sell or retire them within one year from the time of the acquisition.
At the latest price of RSD 540, Telefonija's market capitalization is RSD 313m (EUR 3m). This company reported almost RSD 2.2bn (EUR 21.3m) in revenues last year, while its operating profit was almost RSD 10.7m (EUR 0.11m).