Norilsk Nickel stock jumps 4.2% on buyback news
MOSCOW. Sept 28 (Interfax) - Stock in Russian mining and metals giant Norilsk Nickel surged 4.2% on the market Wednesday morning on news that the company's share buyback had begun.
By 10:14 a.m. Moscow time, the company's stock had risen to 6,788 rubles per share on the MICEX Stock Exchange.
Subsidiary Norilsk Nickel Investments Ltd. will be accepting offers from the parent company's shareholders to sell back shares and depository receipts from 4:00 p.m. Moscow time on September 28 to 4:00 p.m. on October 28, Norilsk Nickel said in a statement.
The mining company's board of directors approved the buyback parameters at a September 13 meeting. Norilsk Nickel will be buying back shares at $306 apiece and its ADR for $30.60. The buyback encompasses up to 14,705,882 ordinary Norilsk Nickel shares, which would be 7.71% of its charter capital. The cost could run to $4.5 billion.
To finance the buyback, Norilsk Nickel has considered issuing bonds convertible into shares at up to $2.25 billion worth.