Romanian lender Banca Transilvania to buy back 15 million shares for rewarding employees

Banca Transilvania, the biggest lender in Romania by assets, plans to buy back 15 million shares, until the end of this year, to distribute them to its employees. The buyback price will be no higher than RON 4.

The Banca Transilvania shares (ticker TLV) were trading at RON 2.39 on September 19. Considering this price, the bank would have to pay RON 36 million (EUR 7.6 mln) for the shares it plans to distribute to employees.

The banks’ shareholders approved earlier this year the repurchase of 35 million own shares for rewarding the employees. The shares targeted by this program represent less than 0.5% of the bank’s share capital.

At the end of June 2019, Banca Transilvania had over 32,300 shareholders, of which over 1,000 were foreign investors who owned 36% of the bank’s shares and over 31,000 were Romanian investors, who controlled the remaining 64% of the shares. Banca Transilvania’s market capitalization is over EUR 2.6 billion.

(Photo source: Banca Transilvania)