AFK Sistema completes buyback
MOSCOW. Oct 17 (Interfax) - AFK Sistema , in continuation of its buyback program, bought a total of 0.07% of its own capital through its subsidiaries between October 10 and 15, bringing the buyback to a close, the corporation said in a statement.
Sistema-controlled Sistema Holding Ltd., based in Cyprus, acquired 325,389 GDR (global depositary receipts), which represents 0.07% of the company's charter capital, and 1,465,300 ordinary shares or 0.02% in the past week.
The company has bought back 1.63% of its stock since the buyback began on June 6. Sistema Holding Ltd held 1.43% of issued shares in Sistema and Russia-based OJSC Sistema Finance Investments held 3.15% as of October 15.
Sistema's board of directors approved the buyback of $300 million in shares at the end of May. The company planned to buy back GDRs and shares, but receipts would make up the bulk of the acquired stocks. The buyback was to be carried out between June 6 and October 15. The total amount of purchased securities would depend on the acquisition price. Since the beginning of the program, the cost of Sistema's GDR has risen from $18.5 to $19.7 each.
Sistema's president Mikhail Shamolin has said that the company intends to cancel the shares that are repurchased. It does not plan to expand the announced buyback program. The company might tap funds received from its Eurobonds placement for financing the share buyback. The company placed $500 million in seven-year Eurobonds with yield at 6.95% in May of this year.
During the last buyback, which closed in November 2011, Sistema spent over $72 million (out of a planned $100 million). The company acquired 375,972 of its own GDRs at an average price of $16.61 per share and 8,745,100 common shares at 20.97 rubles per share. Sistema also bought 4,311,019 ADR in MTS at $13.92 per issue during the November buyback. In total, it acquired 0.17% of its own shares and 0.4% in MTS during the previous buyback.
Sistema held an earlier buyback in August 2011, when Sistema Finance Investments acquired 0.185% of the shares in the parent company on Russian exchanges at a value of around 467 million rubles.
AFK Sistema's charter capital comes to 868.5 million rubles issued in 9.65 billion common shares at par value of 0.09 rubles each. The main shareholder is Vladimir Yevtushenkov with 64.18%. A total of 19% of the Sistema's shares are traded on the London Stock Exchange (LSE).
