23rd Dec 2008 11:08
RAVEN RUSSIA LIMITED
("Raven Russia") or (the "Company")
Share Buy-Back Programme to fund the Employee Benefit Trust
Raven Russia announces that it is to commence a share buy-back programme (the "Buy-back Programme") to buy up to 5 million shares to fund the new Employee Benefit Trust (the "EBT") which is being set up pursuant to the Company's recent internalisation. Any shares purchased will be held by one of the Company's subsidiaries, for subsequent transfer to the EBT.
As per the circular on the internalisation of its external property adviser dated 30 July 2008 (the "Circular"), these EBT shares will be used to retain and incentivise key senior employees below board level by awarding them future contingent entitlements to ordinary shares dependent on their continued employment. Rather than issuing 5 million new shares as proposed in the Circular, the Board believes that a share buyback is in the best interests of Raven Russia's shareholders, and will be NAV per share enhancing.
Any acquisitions pursuant to the Buy-Back Programme will be effected within certain pre-set parameters. The main parameter is that the maximum price paid is to be limited to no more than 105 per cent. of the average middle market closing price of Raven Russia's shares for the 5 dealing days preceding the date of purchase, as stipulated by the Company's annual buy-back authority. Given the level of liquidity in the Company's shares, in a given day Numis may purchase, on behalf of the Company, more than 50 per cent. of the average daily volume over the preceding 20 business days.
Any shares purchased under the Buy-Back Programme will count towards the Company's general buy-back authority of 14.99% of the Company's issue share capital, as approved at the Company's AGM on 30 April 2008.
Raven Russia confirms that it currently has no unpublished price sensitive information.
Enquiries
Raven Russia Limited Tel: +44 (0)20 7235 0422
Anton Bilton / Glyn Hirsch
Bell Pottinger Corporate & Financial Tel: +44 (0)20 7861 3232
Mike Davies / Zoe Sanders
Numis Securities Limited
Nick Westlake (NOMAD) / Rupert Krefting Tel: +44 (0)20 7260 1000
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RAV.L