MMC Norilsk Nickel | 25 August 2008 г. | 11:49

Norilsk Nickel buys back its shares

Norilsk Nickel buys back its shares

The company has announced a share buyback at $254 per share, which is 27% higher than the market price at the last session’s close.

“Norilsk Nickel intends to buy-back its own shares in order to support the Company’s securities, which went down in price significantly in the last several months. This price drop was impacted mostly by factors that are irrelevant to the Company’s fundamentals,” - said General Director Vladimir Strzhalkovsky.

Vladimir Strzhalkovsky also emphasized Norilsk Nickel’s strong growth potential, which the new management team intends to fulfill to the maximum extent.
Shares will be bought-back from shareholders of Norilsk Nickel on a pro rata basis at RUB 6,167 (around $254) per share, which is a volume weighted average share price for the period from February 15, 2008 to August 15, 2008 according to MICEX data. The period was selected to reflect the medium-term movement of the Company’s share prices and minimize the effect of short-term developments.
The number of shares to be bought-back from the shareholders was established, inter alia, on the basis of conservative approach to Norilsk Nickel’s liquidity management and taking into consideration the program of capital investments for 2008-2009.
“In the last three years the shareholders of Norilsk Nickel received more than USD 8 billion as a result of stock buy-backs or buy-outs, and in the form of dividends. The share buy-back will be conducted in accordance with best corporate governance practices, in absolutely transparent manner ensuring equal access for all shareholders of the Company and permitting the holders of American depositary receipts (ADRs) to participate in the share buy-back process. Bought-back shares will be held as treasury shares on the balance sheet of Norilsk Nickel,” - said Alexander Popov, First Deputy General Director of the Company.
Applications for Norilsk Nickel’s share buy-back will be accepted from shareholders willing to sell their shares in the period from September 29, 2008 to October 28, 2008.
Shares will be purchased in the period from October 29, 2008 to November 27, 2008.
Source: Metal Supply and Sales
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