After the shares in Metalac (MTLC) fell last week to their lowest level in more than six years, the company’s supervisory board announced a new buyback program.

As the company stated through the Belgrade Stock Exchange, Metalac will acquire its shares through the organized market up to 10% of its outstanding shares, counting 5.2% of the treasury shares it already holds in its portfolio.

In the explanation, Metalac announced that “the price of the stock does not maintain the fair value of the company, and there is a danger that due to non-economic and other reasons of uncaused business results, the stock will fall further.” It also stated that “a further drop in the stock price could harm not only the shareholders of the company but also the company itself, given that the data on its market capitalization is not even close to the intrinsic market value of the company.”

Shares in Metalac hit in the previous week an RSD 1,220, their lowest level since the beginning of 2016. The stock jumped today 4.4% to RSD 1,300 with a turnover of RSD 5.2m.

Source: Belex, Momentum