18 Sep 2018 19:09

Lukoil completes first share purchase under buyback

MOSCOW. Sept 18 (Interfax) - Lukoil Securities has purchased 390,816 shares in parent company Lukoil (0.05% of share capital) under the buyback program.

The six purchase deals were transacted on September 12-14 at an average price of $67.96 per share.

Lukoil announced the start of the $3 billion buyback program on the open market on September 3.

The buyback program, which will include purchases of depositary receipts, will last from September 3, 2018 to December 30, 2022.

The $3 billion is equivalent to 44 million ordinary shares of the company or 5.2% of its share capital at a closing price of $68.16 per depositary receipt (representing one ordinary share) on August 29, 2018 at the London Stock Exchange.

Lukoil Securities will purchase the shares on regulated markets via professional international brokerages.

The buyback is one of a number of strategic initiatives aimed at increasing shareholder value that were approved by the Lukoil board of directors in December 2017. In addition to the buyback the initiatives included cancellation of the bulk of treasury stock and using the remainder in the incentives program for key employees.

About 141 million Lukoil shares (roughly 16.6% of capital) are held as quasi-treasury stock, of which the company will cancel just over 100 million (nearly 12% of capital), with the rest going to the management incentives program.