Rosneft Announces Results of Share Buyback
On May 30, 2012 Rosneft’s Board of Directors announced the preliminary results of the Company’s share buyback.
Rosneft shareholders were entitled to request a share buyback in accordance with regulations set down in the federal law On Joint Stock Companies following the approval of major transactions at an extraordinary shareholders’ meeting on April 10, 2012.
The buyback price was set at 212 rubles a share. The price was defined by the Company’s Board of Directors and based on an independent appraiser’s report. The price is fixed and does not depend on stock price fluctuations. Rosneft thereby created the most favourable conditions under which shareholders could exercise their rights.
Payment for the shares will be made in full by June 20, 2012 in line with the timeframe established by Russian legislation. The buyback will be financed from the Company’s own free cash.
The fact that less than 1,000 Rosneft shareholders requested a buyback is the evidence of the high level of trust in the Company. A total of 322 million shares worth 68.3 billion rubles were submitted for the buyback, which represents just a little more than half of the total volume of shares permitted for buyback under the federal law On Joint Stock Companies.
The Company currently has no plans to cancel the shares it bought back and to reduce its share capital. Rosneft shares are a highly liquid asset, which the Company plans to use as efficiently as possible, taking into account the necessity for maintaining optimal free float.