Uralkali buys back 2.47% of shares to date, free float down to 6.5%
MOSCOW. Sept 8 (Interfax) - Uralkali purchased 35.9 million shares and 110,000 global depository receipts (GDR) under the buyback program in the August 29-September 7 period, the potash miner said.
Uralkali has bought back 2.47% of charter capital since it launched the buyback program announced on May 18, 2016.
As of September 7, the ordinary shares and GDR in free float amounted to 6.5% of charter capital.
Pursuant to the Moscow Exchange's listing rules, if for six consecutive months the free float in common shares remains below 7.5% of the company's share capital, the company's common shares will be excluded from the Level 1 quotation list and will be eligible only for the Level 3 quotation list. This listing level downgrade may have a material adverse effect on the trading price and liquidity of the company's common shares, Uralkali said.
The company has said it might no longer be interested in maintaining a listing on the Moscow Exchange if it is downgraded to Level 3.
The buyback program continues through September 19 and stipulates purchase of up to 4% of shares. Implementation of the program is the latest step in Uralkali shareholder efforts to take the company private. It delisted from the London Stock Exchange late last year. At that time, sources close to Uralkali shareholders told Interfax that the company might become private by the end of 2016. However, at present the company is not expected to be delisted before 2017.
Uralkali's ownership structure changed this year: Onexim's 20% stake was purchased by Belarusian businessman Dmitry Lobyak, a former classmate of UralChem owner Dmitry Mazepin. UralChem owns 19.99% of shares. The remaining shares, aside from the 6.5% in free float, are held as quasi-treasury stock.
