Etalon Group Limited (LSE: ETLN) (the "Company" or the “Group”), one of Russia's largest and oldest residential real estate developers, announced today that it has indefinitely suspended the share buyback program (the “Program”) announced on 28 October 2011.
The last purchase under the Program was made on 6 January 2012. In total the Group acquired 2.9 mln GDRs at an average price of USD 4.86. With USD 490 million* of expansion capital on the Company’s balance sheet, Etalon Group management plans to hold the GDRs acquired under the Program and the Company is under no pressure to sell down the GDRs.
Etalon Group President Vyacheslav Zarenkov said: “Our core business remains extracting value from the residential real estate projects that we acquire. The Group is currently in the process of acquiring a number of projects that we will announce in due course. With these acquisitions, we expect to increase delivery volumes in 2015-2016 from the currently planned c. 800 thousands sqm. Currently, we are fully landbank sufficient through 2016.
“By holding the GDRs we have bought back on our balance sheet, we are putting ourselves in the shoes of our shareholders, which we believe will encourage us to further enhance our communications with the investment community.”
*As of 31 December 2011, according to unaudited management accounts
Etalon Group IR Team
T: +44 (0) 20 8123 1328
T: +7 495 663 8005
About Etalon Group
Founded in 1987, Etalon Group is one of Russia's largest residential real estate developers. The Company operates in both the St. Petersburg and Moscow Metropolitan Areas.
Etalon Group has a strong portfolio focused on large-scale residential complexes, with a dominant position in the "comfort class" (lower middle class and upper economy class) price segment, providing high quality living at affordable prices. The Company's portfolio comprised 31 projects, as of 31st December 2011, with a total of 3.25 million sqm of unsold net sellable area ("NSA") in the St. Petersburg and Moscow Metropolitan Areas. For the year ended 31st December 2010, the Company recorded revenues of RUB 20.3 billion (USD 669 million) and EBITDA of RUB 6.9 billion (USD 227 million), with an EBITDA margin of 34%.
Since 20th April 2011, Etalon Group Limited has had its GDRs traded on the Main Market of the London Stock Exchange.