Business 11 May 2021, 8:55am

Hungary Magyar Telekom to buy back HUF 10 bn worth of own shares

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Hungary's leading telecommunications group Magyar Telekom is to pay 15.3 billion dividend from its 2020 after-tax profit and plans to repurchase own shares of up to HUF 10.2 billion for shareholders' remuneration, the company said in a statement on the website of the Budapest Stock Exchange (BSE).

Magyar Telekom announced on 25 February 2021 that its Board of Directors recommends the general meeting the payment of HUF 15.3 billion dividend from the group's 2020 after-tax profit. On the same day, the company announced that it is initiating a share buyback auction through which MTel intends to repurchase own shares with a maximum total value of HUF 10.207 billion for the purpose of shareholders’ remuneration ('Transaction').

MTel has announced now that on 16 April , its BoD approved the authorization necessary for the carrying out of the Transaction. The Transaction is scheduled for 10 June, 2021.

Shares will be purchased starting from the lowest price offered with total overall value less or equal to the Maximum Amount. MTel reserves the right to cancel the Transaction or stop the execution thereof at any time prior to the conclusion of the Transaction, including the possibility of stopping the Transaction during the Auction.

Magyar Telekom rose 10% on the BSE this year.