© Reuters.
Investing.com – Russian mining company Polyus (PLZL.MM) revealed on Monday that the company’s board of directors intends to buy back shares worth up to 579.4 billion ($6.32 billion).
And the company stated in a statement that this measure can enhance its financial flexibility for future merger and acquisition deals.
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In June, Polyus’ board approved the delisting from the London Stock Exchange, which is expected to become effective on July 25, saying it was “no longer reasonable” to maintain the Certificate of Deposit program after the US and UK imposed sanctions the previous month.
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Like most Russian companies, the company is adjusting to dwindling access to Western markets and capital.
Polyus is dependent on and increasing production underpinning the stability of its financial performance and may turn to potential M&A transactions or capital markets placements once the buyback is complete.
“The repurchased shares can become a vehicle for various mergers and acquisitions and project financing deals, which will be cheaper for the company than borrowing,” a Polius spokesperson said.
Moscow-listed Polyus shares rose about 15% in the minutes following the announcement.
Polius said the purchase price of 40,802,741 shares was set at 14,200 rubles, representing a premium of about 32.56% to the closing price on July 7.
Polyus said its subsidiary, Polyus Krasnoyarsk, would carry out the offer using its own money and foreign debt.
“The maximum number of shares that can be purchased represents approximately 29.99% of all shares outstanding,” Polius continued. Owners may offer any number of shares they own from the close of business on July 7, with August 9 as the deadline for bids for the sale.
2023-07-11 10:50:00
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