INVL Technology shareholders approve procedures for acquisition of own shares

The shareholders of INVL Technology, a company that invests in IT businesses, approved procedures for acquiring its own shares. The company’s operating results for 2023 and distribution of profits were also approved at the shareholders’ meeting held on 30 April.

By the decision of INVL Technology’s shareholders, a EUR 9.8 million reserve formed in 2015 would be used for the acquisition of own shares. The aim of acquiring shares is to fulfill obligations related to stock option programmes and other share allocations to employees of subsidiaries, and/or to reduce the company’s authorized capital, annulling acquired own shares.

The company was given the right to acquire its own shares for up to 10% of its authorized capital, with a time limit for such acquisitions of 18 months from the date of the decision of the shareholders’ meeting. The maximum purchase price per share would be INVL Technology’s last published net asset value, while the minimum would be EUR 0.29. Since the acquired shares will not be sold, no minimum selling price or sale procedure is stipulated.

The equity and the net asset value of INVL Technology were EUR 43.53 million at the end of 2023, or EUR 3.6052 per share, and grew 13.7% during the year. The company had a net profit of EUR 5.17 million last year, which is 2.4 times its 2022 net profit (of EUR 2.11 million). The results for last year were positively impacted by a EUR 9.95 million increase in the value of portfolio companies. Provisions for performance and accrued management fees reduced the result for 2023 by EUR 4.91 million.

INVL Technology owns the cybersecurity company NRD Cyber Security, the GovTech and FinTech company NRD Companies, and the Baltic IT company Novian.

In mid-March this year, the company announced that it had signed an agreement with the Zurich branch of M&A intermediation service provider Corum Group’s Luxembourg-based unit Corum Group International, to advise and serve as M&A intermediary on the sale of the company’s portfolio of businesses.

INVL Technology, which is managed by INVL Asset Management, the leading alternative asset manager in the Baltics, is a closed-end investment company which must exit its investments no later than mid-July 2026 and distribute the money to shareholders.

Important information

This is a marketing communication of an information nature, which is not and shall not be construed as an offer to purchase investment shares of a collective investment undertaking, an investment recommendation, or investment research, as it is not designed to take into account the investment objectives, financial situation, or needs any individual investor.

When investing, the investors assume the risk associated with the investment. The value of investments can both rise and fall, and an investor may recover less than he/she/it has invested. Past investment results do not guarantee the same results or profitability in the future. Past performance is not a reliable indicator of future performance. Before making a decision to invest, potential investors should, on their own or with the help of investment advisers, assess the suitability of the investment for them along with the taxes and fees related to the investment, consider all the risks related to the investment, and carefully read the articles of association, prospectus and other documents of the respective collective investment undertaking.