Russia’s largest state-controlled oil company Rosneft will complete the purchase of 68.3 billion rubles ($2 billion) worth of shares from its minority shareholders, following the preliminary results of the company’s share buyback, Rosneft said on Thursday.
The buyback involves Rosneft’s minorities opposed to planned changes in an oil supply contract with China.
“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,” Rosneft said a statement.
The buyback price was set at 212 rubles per share. The price was set by the company’s Board of Directors, based on an independent appraiser’s report. 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 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,” the company said.