Bittnet Group summons shareholders to approve free shares distribution
Bittnet (BNET), a group of IT companies, listed on the Main Market of the Bucharest Stock Exchange, announces to investors the intention to carry out the share capital increase in the total value of approximately 17 million lei and distribute free shares to the shareholders. The decision is subject to the shareholder’s approval at the upcoming General Meeting, scheduled to take place on April 27th, 2021. If approved, shareholders of Bittnet will receive 6 free BNET shares for every 10 shares held.
“We are happy to continue our tradition of rewarding our shareholders with the free shares. Since our listing in 2015, the annual capitalization of our profits has been fueling our development. As a growth company, we will reinvest our capital in both local and international markets. For 2021, in the context of our recently announced acquisition of a stake in Czech-based company Servodata, we look forward to making our mark on the CEE market. We expect this first cross-border transaction to be the building ground to deliver our promise to shareholders – to reach 100 million euro in turnover within the next four years,” said Mihai Logofatu, CEO and co-founder at Bittnet Group.
Apart from the approval of the distribution of free 6 shares for every 10 shares, the shareholders will have an option to opt for an additional cash dividend. Each shareholder who casts a vote in the shareholder meeting will have a chance to indicate if they prefer a 0.1 lei cash dividend or an additional one share for every 10 shares held. The management encourages shareholders to opt-in for the cash dividend. It will allow the company to implement the stock option plan through which the company will reward top-performing employees.
“We propose to our shareholders to reward with a 60% distribution of free shares and, following the 2020 model, we also propose additional reward, of 1% cash dividend, of shareholders who choose to support the company in fulfilling its obligations and continuing the development model. We believe that our proposal is attractive to shareholders, offering both shares and cash. We encourage shareholders to join our electronic meeting of shareholders on April 27,” added Cristian Logofatu, co-founder of Bittnet Group.
The general meeting of shareholders on 27 April 2021 will take place in a fully electronic format. Bittnet puts at investor’s disposal the eVote online application that allows shareholders to connect from anywhere in the world. This will be the third general meeting of shareholders organized by Bittnet entirely electronically – a precedent on the Romanian capital market.
The company also puts to shareholder’s approval the ratification of the investment agreement for the acquisition of 35% of shares in a Czech-based IT&C integrator Servodata a.s. The value of the transaction is 1.4 million euro. Other items on the agenda include a new stock option plan, a share buyback program, and a capital increase operation that is expected to bring a 15% return to investors.
Shareholders are also summoned to approve the budget for 2021. Bittnet aims for a consolidated turnover of 157 million lei and a gross profit of 12.8 million lei. These estimates include the results to be generated by six companies from the Group. As of 2021, Bittnet Group’s Education Division consists of Bittnet Training, Equatorial Gaming, the eLearning Company. The Technology division consists of Dendrio Solutions, Elian Solutions and Softbinator Technologies.
Bittnet Group reported 108.6 million lei consolidated revenues in 2020 and an operating profit of 4.3 million lei, an increase of 400% compared to the same period of last year. In 2020 Bittnet Group made new investments worth over 10 million lei in Equatorial Gaming, The eLearning Company and Softbinator.