Minerva repurchases stock seeking to increase share value
26/03/2008
In order to revert the devaluation of its shares, Brazilian packing company Minerva Group is repurchasing 10% of its circulating shares. The company has said that the value of the shares of its main competitors went down by 28.1% in 2007 while Minerva's shares dropped by 56.2%.
“The most important thing for us is to show our investors that we are here to stay for a long time,” said Fernando Galletti de Queiroz, president of Minerva.
According to Mr Queiroz, the company has adopted a “more conservative” policy (meaning that it is less eager to make new acquisitions) because they believe that consolidation “takes place in the absence of euphoria”. The idea would be to protect capital and wait for the right moment to make any new acquisitions.
Mr Queiroz added that the company’s profit margin at 4.5% is one of the highest in the sector. Adjusted net profits were US$ 39 million, a 24% increase on 2006. He also said that Minerva would invest approximately US$ 91 million in 2008.
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