16th Nov 2012 14:51
NOVATEK BEGINS SHARE BUYBACK PROGRAM
Moscow, 16 November 2012. OAO NOVATEK ("NOVATEK" or the "Company") hereby announces that today independent broker has begun to execute purchases of ordinary shares of NOVATEK (the "Shares") and Global Depositary Receipts representing Shares (the "GDRs", each GDR representing 10 Shares) on the open market pursuant to the share buyback program ("Program") approved by the Company's Board of Directors and announced on 7 June 2012.
The Company's CFO and Board member Mark Gyetvay stated: "We have delivered stellar financial and operational results throughout 2012 in accordance with our Corporate Strategy, and have outlined a clearly articulated plan to continue expanding our production base, our processing and transport assets, and our hydrocarbon commercial activities, which, when implemented, will continue our enviable proven track record of delivering sustainable growth in 2013 and beyond. The recent share price movement does not fully recognize our strong business fundamentals and future growth prospects as well as properly assessing the recent announcement of a major value accretive acquisition. Accordingly, we have decided to allocate capital to our share buyback program as previously announced and, effective today, we have begun the process of purchasing our shares on the open market in accordance with rules and regulations governing these types of transactions".
Note
On 7 June 2012, the Company's Board of Directors unanimously approved a buyback program in respect of Shares and/or GDRs of NOVATEK in the aggregate amount of up to 600 million US dollars. All purchases of Shares and/or GDRs will be made by Novatek Equity (Cyprus) Limited, a wholly owned subsidiary of the Company, which engaged a company within Sberbank group to act as an independent broker to execute any purchases pursuant to the Program. The purchases of Shares and/or GDRs may be executed during a twelve-month period starting 7 June 2012. Any Shares and GDRs acquired pursuant to the Program may be used for purposes of financing the Company's operations or utilized in the Company's compensation and incentive program for management and key employees. The Shares and GDRs so acquired will retain all rights, including right to receive dividends.
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For further information, please visit www.novatek.ru or contact:
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OAO NOVATEK is Russia's largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company's upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for approximately 84% of Russia's natural gas production and approximately 17% of the world's gas production. NOVATEK is an open joint stock company established under the laws of the Russian Federation. The Company's shares are listed in Russia on MICEX-RTS Stock Exchange and the London Stock Exchange (LSE) under the ticker symbol "NVTK".
Copyright Business Wire 2012
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