Kernel (KER) plummeted to its lowest point since its 2007 IPO. Over the
week, the KER stock suffered a 6.2% drop, landing at PLN 11.00, triggered
by news of the company’s additional issuance of 216mn shares at a price of
27.77 cents (PLN 1.15 per share). Small shareholders of Kernel were denied
participation in this additional issuance. Consequently, there will be a
significant dilution of the minority shareholders’ stake, reducing their share
in the company’s future profits and dividends. Prior to the additional
issuance, the main shareholder of Kernel controlled 80% of the voting shares.
According to our calculations, after the registration of the additional
issuance, the main shareholder will concentrate approximately 95% of the voting
shares, reducing the minority shareholders’ stake from 20% to 5%. Furthermore,
there is now the possibility of a squeeze-out of minority shareholders, as
Luxembourg law, where the Kernel holding structure is registered, allows for
compulsory acquisition of minority stakes when ownership exceeds 95%.
Meanwhile, shares of the agro-holding company Astarta (AST) surged by
5.7% to PLN 33.45 following the company’s report of a substantial profit of EUR
55mn euros for the first half of this year (net profit per share of PLN 10.00).
The current price-to-earnings (P/E) ratio for Astrata shares stands at just
2.3x.
As for Milkiland (MLK) shares, their price increased by 1.2% over the
week, reaching PLN 0.84. Over the past 12 months, Milkiland shares hit a low of
PLN 0.72 in October of last year and a high of PLN 1.16 in September of the
same year. Since the beginning of 2023, the company’s shares have lost 4.5% of
their value.
Among the stocks trading on the Ukrainian
Exchange, there were no significant transactions that had an impact on
quotations. Regarding Raiffeisen Bank (BAVL), the buy/sell range remains at
26/29 kopecks per share. The indicative price for Centrenergo (CEEN) stands at
UAH 4.89 per share.
STOCKS IN THE NEWS
- Astarta Doubles Net Profit to
EUR 55mn in 1H23 Implying PLN 10 per Share
The National
Bank of Ukraine has opened a special fundraising account to support the Armed
Forces of Ukraine. Please find more at the National Bank’s official website
under the link below:
www.bank.gov.ua
full report
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or comments you may have regarding our research products.
Please contact us by email:
Dmitry Churin, Head of Research,
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