Page 114 - RusRPTMay21

be based on adjusted free cash flow, with a 75%-100% payout stipulated in the Dividend Policy and potentially higher payouts in case of stronger markets and/or leverage headroom.
8.3.3 ECM news
Messenger Telegram has started getting ready for a 2023 initial public offering (IPO) to float from 10% to 25% of shares with analysts valuing the whole firm at US $30–50bn, business daily Vedomosti reported on Monday, quoting sources. Telegram started a pre-IPO research and is choosing a region and a stock exchange for floatation. Besides the IPO, the messenger is considering two more options – direct listing and the launch of a special-purpose acquisition company (SPAC). The exact date of going public will depend on the market. The consultants suggest linking the company’s value to the monthly number of active users and put the value of one user at $50, the daily said. The messenger said earlier its audience exceeded 500mn users per month. The company may hold the IPO in Asia, the region that accounts for more than 40% of its audience. Telegram earlier sold bonds for more than $1bn to large investors from all over the world.
Russian metallurgical giant Norilsk Nickel is to buy back up to 3.4% of its outstanding shares (5,382,865 shares) spending around $2bn on the programme and paying a 3% premium to their current market price, the company announced on April 27. The buyback is set to run from 20 May to 18 June, which would cover the record date of June 1 for the company’s final 2020 dividend payment of RUB 1,021.22/share that implies a yield of 3.8%, reports Sova Capital. Norilsk intends to cancel the shares acquired during the buyback expect for a 0.5% stake in the company that will be used in employee incentive programs. Norilsk Nickel’s board of directors has approved a buyback program with a buyback price is set at RUB 27,780/share, which will be payable in Russian rubles by no later than 3 July. Shareholders can submit their shares from 20 May to 18 June. If the total number of shares submitted for the buyback exceeds the maximum number of shares allocated (5,382,865), then the buyback will be done on a pro-rata basis based on shareholdings at the end of the buyback period of June 18. All Norilsk Nickels shareholders will be allowed to participate in the buyback. Holders of the company’s ADRs (23% of total shares) will have to convert their ADRs into ordinary shares in order to participate in the buyback.
TCS Group announced a buyback of up to 700,000 of its GDRs for up to $45mn. The GDRs are to top up the management incentive programme (MLTIP), as has been announced before. While we consider the buyback to be good corporate governance discipline, we think that implementing the announced 2021-23 strategy goals and the potential international expansion of the Group would create greater upside for investors. We keep our upbeat view on TCS unchanged. Our 12-month Target Price of $72/GDR implies a 26%
114 RUSSIA Country Report May 2021 www.intellinews.com