WARSAW, April 14 (Reuters) - Polish cable TV operator Multimedia Polska announced a 330 million zlotys ($116 million) share buyback to boost the stock's price, planning to issue 400 million zlotys in new debt to help finance the move.
The buyback equals a fourth of Multimedia current market value, and is to be voted by the company's shareholders on May 10.
'We think that the company is undervalued and that we still have small debt,' Chief Executive Jacek Baginski, told Reuters in a phone interview.
'Buyback will surely not limit our takeover capabilities. We are absolutely not changing our investment plan.'
By 0926 GMT, Multimedia shares edged up 0.1 percent to 8.50 zlotys. The stock has outperformed Warsaw's midcap index by about 7 percent this year.
Baginski said he expected 2010 earnings before interest, tax, depreciation and amortisation (EBITDA) to rise by a percentage in the teens, with net profit growth 'possibly significantly higher than EBITDA growth'.
(Reporting by Maciej Onoszko, writing by Adrian Krajewski, editing by Will Waterman)
($1=2.834 Zloty) Keywords: MULTIMEDIA/ (adrian.krajewski@thomsonreuters.com; +48 22 653 9709; Reuters Messaging: adrian.krajewski.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The buyback equals a fourth of Multimedia current market value, and is to be voted by the company's shareholders on May 10.
'We think that the company is undervalued and that we still have small debt,' Chief Executive Jacek Baginski, told Reuters in a phone interview.
'Buyback will surely not limit our takeover capabilities. We are absolutely not changing our investment plan.'
By 0926 GMT, Multimedia shares edged up 0.1 percent to 8.50 zlotys. The stock has outperformed Warsaw's midcap index by about 7 percent this year.
Baginski said he expected 2010 earnings before interest, tax, depreciation and amortisation (EBITDA) to rise by a percentage in the teens, with net profit growth 'possibly significantly higher than EBITDA growth'.
(Reporting by Maciej Onoszko, writing by Adrian Krajewski, editing by Will Waterman)
($1=2.834 Zloty) Keywords: MULTIMEDIA/ (adrian.krajewski@thomsonreuters.com; +48 22 653 9709; Reuters Messaging: adrian.krajewski.thomsonreuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.