Reports on submitting buyback requests are approved as part of reorganization of Bashneft
On June 15, 2012, the Board of Directors of JSOC Bashneft and the Boards of its subsidiaries to be merged with the Company (OJSC Ufimsky refinery plant, OJSC Novoil, OJSC Ufaneftekhim, OJSC Bashkirnefteprodukt and OJSC Orenburgnefteprodukt) approved the reports on the results of submission of buyback requests by the shareholders.
The shareholders who did not vote or voted against the reorganization were given the right to submit a buyback request. In accordance with the Law on Joint-Stock Companies, the total amount of funds which the Company can use for the buyout of shares from the shareholders cannot exceed 10% of its net asset value. If the total number of shares to be bought back exceeds the number of securities which can be bought out considering this limit, the shares are bought out in proportion to the number of submitted requests.
Alexander Goncharuk, the Chairman of the Board of Directors, emphasized, ‘Buyback of shares at fair market value is a common practice. It is also an additional way of the Group’s profit distribution to all shareholders of Bashneft Group. Together with the dividends of JSOC Bashneft amounting to 99 roubles per share on the recommendation of the Board of Directors, total payments to shareholders for 2011 can exceed 75% of the Group’s net income under IFRS for this period.’