26 Sep 2011 07:00
Goldenport Holdings Inc.
Athens, 26 September 2011
Initiation of a Share buy-back programme
Goldenport Holdings Inc. ("Goldenport" or "the Company"), (LSE: GPRT) the international shipping company that owns and operates a fleet of container and dry bulk vessels announces that with effect from today and at its sole discretion, it intends to commence a limited share buy-back programme, as the Board of Directors ("the Board") considers that the current share price is trading at a significant discount to the underlying value of the Company.
Management remains focused on delivering the Company's growth strategy and has the financial flexibility to continue to pursue potential vessel acquisitions that meet its investment criteria and to drive organic growth while maintaining a sustainable dividend policy. In light of this and the return on capital opportunity implied by the current share price, the Board believes an initial buy-back of up to £ 1 million in value is an appropriate use of its cash.
The Company has a strong balance sheet with which to make the share buy-back purchases whilst also continuing to seek further shipping investment opportunities to enhance shareholder value.
The buy-back programme will be conducted in accordance with the resolution passed at the last Annual General Meeting on 17 May 2011, providing the Company a general authorisation to make purchases of up to 9,128,243 Shares of US$0.01 each, representing approximately 10% of the Company's issued share capital. The timing and quantum of any purchases will be determined by Goldenport in accordance with the Listing Rules of the UK Listing Authority and with regard to the prevailing market conditions and any other relevant considerations. The Company is not planning to purchase more than fifty per cent of the average daily volume traded in the twenty trading days preceding the date of purchase. Any shares purchased will be held in treasury.
Captain Paris Dragnis, Founder and Chief Executive Officer of the Company commented:
"The recent share price performance neither reflects the underlying value of our assets nor our belief in the medium to longer term prospects of the Company. Positive developments such as the improved profitability evidenced in our recent interim results, our increased dividend payout, our enlarged operational fleet following the completion of our initial new building programme and our strong balance sheet, seem to be disconnected from the current share price. Therefore we believe that the limited buy-back of our shares is in the best interests of the Company and its shareholders."
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For further information, please contact:
Goldenport Holdings Inc.:
Christos Varsos, Chief Financial Officer +30 210 8910500
John Dragnis, Commercial Director
Panmure Gordon (UK) Limited:
Ross Penney +44 207 459 3600
Brett Jacobs
Investor Relations Coordinators:
Capital Link:
Annie Evangeli - London +44 203 206 1320
Nicolas Bornozis - New York +1 212 661 7566
E-mail: goldenport@capitallink.com
info@goldenport.biz
Further Information:
Overview of Goldenport
Goldenport is an international shipping company that owns and operates a fleet of twenty-six container and dry bulk vessels that transport cargo worldwide. The fleet consists of twelve container vessels and fourteen dry bulk carriers. Goldenport is listed on the London Stock Exchange under the ticker GPRT.
Website: www.goldenportholdings.com or www.goldenport.biz