The proposal was put forward by major shareholder LNS, which has argued for some time that because of liquidity constraints, particularly in the local Helsinki market where Afarak is based, the company should offer to buy out its shareholders.
Bosses had previously suggested that they were not in favour of a buyback but said on Friday that it was their “duty” to carry out the wishes of shareholders.
The share buyback will be limited to €28.4mln – although the board can waive this if they want – and investors are not being forced to sell if they do not want to.
As for timings, Afarak said it will lodge the offer by the end of March 2019 and it will remain open until the end of May. It previously said that this timeframe makes the most sense as the financial statements for 2018 will be ready by then.
Although it was the one that pushed for the buyback, LNS, along with fellow shareholder ATKEY, has said it won’t sell any of its shares.
Shares rose 3.2% to 80p on Monday afternoon.