Last checked at 19 May 2010 07:00
PRESS RELEASE
May 19, 2010, Kyiv, Ukraine
MHP S.A.
Approval of the Amendments to the Buy Back Share Program
MHP (LSE: MHPC) ("MHP" or the "Company") announces that the Board of Directors (the "Board") at its meeting on 18th May 2010 has approved the Amendment to the Buy Back Share Program (the "Program").In order to improve flexibility to manage the Company's financial operations the Board decided to increase the maximum number of GDRs that can be purchased by the Company under the Share Buy Back Program to purchase up to 5,538,500 (such number representing not more than 5% of the issued share capital of the Company and therefore being below the 10% of the issued share capital allowed under Luxembourg law for the purpose of Share Buy Back) of its fully paid up ordinary shares in the form of GDRs listed on the London Stock Exchange.
The Share Buy Back Program will be implemented within one year of the approval of the amended program by this Meeting of the Board. The purchase of each GDR will be made at the market price provided that it is not less than US$1 (minimum threshold) and not more that US$18 (maximum threshold) per GDR.
Some of the purchased under the Buy Back Share Program shares will be used for a compensation and incentive program. Non-used shares of the Company will be held in treasury until their resale within the next three years.
The Extraordinary General Meeting of Shareholders to consider approval of the Amendment to the Program is scheduled for 27 May 2010.
For further information please contact:
| Financial Dynamics Ben Foster (London) Marc Cohen (London) Leonid Solovyev (Moscow)
For investor relations enquiries Anastasiya Sobotyuk (Kyiv) a.sobotyuk@mhp.com.ua | London: +44 20 7831 3113 Moscow: +7 495 795 06 23
Kyiv: +38 044 207 99 55 |
Notes to Editors:
Information on MHP
MHP is the leading producer of poultry products in Ukraine with the greatest market share and highest brand recognition for its products. MHP owns and operates each of the key stages of chicken production processes, from feed grains and fodder production to egg hatching and grow out to processing, marketing, distribution and sales (including through MHP's franchise outlets). Vertical integration reduces MHP's dependence on suppliers and its exposure to increases in raw material prices. In addition to cost efficiency, vertical integration also allows MHP to maintain strict biosecurity and to control the quality of its inputs and the resulting quality and consistency of its products through to the point of sale. To support its sales, MHP maintains a distribution network consisting of 11 distribution and logistical centres, within major Ukrainian cities. MHP uses its trucks for the distribution of its products, which Management believes reduces overall transportation costs and delivery times.
MHP also has a leading grain cultivation business growing corn to support the vertical integration of its chicken production and increasingly other grains, such as wheat and rape, for sale to third parties. MHP leases agricultural land located primarily in the highly fertile black soil regions of Ukraine.
Since May 15, 2008, MHP has traded on the London Stock Exchange under the ticker symbol MHPC.
Forward-Looking Statements
This press release might contain forward-looking statements that refer to future events or forecast financial indicators for MHP S.A. Such statements do not guarantee that these are actions to be taken by MHP S.A. in the future, and estimates can be inaccurate and uncertain. Actual final indicators and results can considerably differ from those declared in any forward-looking statements. MHP S.A. does not intend to change these statements to reflect actual results.