Jenoptik buys back own shares
Shares shall be used as acquisition currency.
The technology group Jenoptik AG has decided to purchase back up to 3.7 million of its own shares. On May 31, 1999, the General Meeting authorized the executive board to buy back up to 10 percent of the shares issued. As a first step, it has been planned to purchase back 4.99 percent of the Jenoptik shares outside of an organised stock exchange. According to the decision of the General Meeting, the purchase price must not differ more than 10 percent from the average value of the closing prices on the last five trading days on the stock exchange in Frankfurt.
As announced in mid July, the Jenoptik Group will concentrate on the two growing business divisions Clean Systems and Photonics, which will be expanded substantially. "We plan to use the Jenoptik share as acquisition currency for the projected growth of Clean Systems and Photonics. At the present share price level, we consider the share buy back as a good investment in the future," said Jenoptik chairman Lothar Späth.
In view of the high inflow of funds from the sale of Krone AG, which has been sold to the US Group GenTek with retroactive effect as of July 1, 1999, the share buy back was a good means to strengthen the shareholder value for Jenoptik's shareholders, Späth gave as reasons for the decision of the executive board. By reducing the number of shares on the market the cost of capital could be reduced in the medium term and earnings per share could be increased.
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