"Tigar" buys its own stocks to increase level of solvency

- Company "Tigar" has made the decision to buy up to 5% of total number of its own stocks, that is, maximum 85,923 stocks, in the organized market – the Pirot-based tire manufacturer announced on the website of the Belgrade Stock Exchange.

According to the announcement, "Tigar" is going to buy its own stocks in order to prevent disturbances in the securities market and serious damages to the company.

"Tigar" has issued 1.7m common stocks whose nominal value is 1,200 RSD.

The decision about volume and price of stocks will be made by the CEO of "Tigar" on the basis of the trading information from the Stock Exchange.

By making the decision about intervention, that is, procurement of its own stocks on the Stock Exchange, "Tigar" reacted on the continuous drop in price of stocks worsened by poor solvency.

The people in the Pirot-based company estimate that the procurement of stocks may fail to improve solvency because of the reduced demand and insufficient supply, and in that case they will have to move to lower level of the market, that is, Standard market.

The transfer to Standard market would, among the rest, endanger the position of local institutional investors, the stockholders of “Tigar”, who are obliged by the Law to invest part of the funds in the stocks on A Listing.

Current price of the stocks of "Tigar" is 340 RSD, which is their minimum value. The highest price was registered in mid-April 2007 - 3,199 RSD.