Russia: Novatek Approves Share Repurchase Program

Novatek Approves Share Repurchase Program

NOVATEK of Russia announced today that the company’s Board of Directors unanimously approved a buyback program in respect of ordinary shares of NOVATEKand/or Global Depositary Receipts representing Shares (each GDR representing 10 Shares) in the aggregate amount of up to 600 million US dollars.

The purchases of Shares and /or GDRs may be executed during a twelve-month period starting today, the company said in a statement.

The Program has been designed in full compliance with applicable legal requirements following a review of best market practices for similar transactions. All purchases of Shares and/or GDRs will be made for the account of Novatek Equity (Cyprus) Limited, an indirect wholly owned subsidiary of the Company. The Purchaser has engaged a company within Sberbank group which will act as an independent broker to execute any purchases pursuant to the Program. 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 previously announced compensation and incentive program for management and key employees. Acquired Shares and GDRs will retain all rights, including right to receive dividends.

The Company’s CFO and Board member Mark Gyetvay commented: “The decision taken to implement a share buyback program reflects the confidence of the Board of Directors in the fundamental value of its Shares and GDRs. In implementing the share buyback program, NOVATEK undertakes a balanced approach to the allocation of funds ensuring the development of the Company’s core exploration and development activities as well as maximizing the return of capital to shareholders, while maintaining a stable and prudent capital structure.”
[mappress]LNG World News Staff, June 7, 2012