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5% of revenues. According to Kommersant, Andreyelousov, the first Deputy Prime Minister, supported the idea, instructing the government to make the necessary changes on 1 October. The increase in the tariff, in his opinion, needs toe limited to the level of inflation. The office of Deputy Prime Minister Alexander Novak confirmed to Kommersant that this decision was made at a meeting with First Deputy Prime Minister Andreyelousov. The Council of Electricity Consumers opposes the proposal
8.3.3 ECM news
Novatek announced, 27 September, that the company had purchased 787,798 ordinary shares (including GDRs) on the open market over 20-24 September, marking the first time the company had purchased shares as part of itsuyback program since November 2020. The average price for the period was $255.5/GDR, implying that Novatek spent $20.1mn over 20-24 September. Since the program's inception, we calculate that Novatek has spent roughly $406mn of the $600mn approved. Since the program started in 2012, Novatek has purchased 32.6mn shares, spending around $406mn out of the $600mn approved for the buyback, on our calculations. On 1 June, the company’soD extended the buyback until 7 June 2022.
Rosneft has surpassed the capitalization of British oil firm BP according to LSE. At the start of trade on September 27, Rosneft was equivalent to $90,6bnandP had a figure of $87,7bn, Vedomosti writes. Since the start of the year, Rosneft has increased about 40% on LSE and the Moscow Exchange.
Rusagro announced its SPO results, 30 September. The company increased the placement size 10% to 19.8mn GDRs, or 14.7% of its share capital. As a result, majority (selling) shareholder Vadim Moshkovich reduced his stake in the company from 71.8% to 57.1% (excluding treasury stock). The placement price was $13.88/GDR, suggesting an 8.8% discount to market close before the announcement of the deal. Rusagro disclosed that Maxim Vorobyov hadecome the second largest shareholder in the company at c. 10.1% (excluding treasury stock) following the SPO. CEO Maximasov also participated in the offering,buying 250,000 GDRs to increase his stake to 7.7% (excluding treasury stock). As indicated previously, a 180-day lock-up period applies to both Mr. Moshkovich and Mr.asov.
Real estate company LSR has completed its own share acquisition offer, having purchased 5.4mn shares for RUB 4.2bn (RUB 780/share), decreasing its free float from 33.9% to 28.7%. The acquired shares are to be transferred to the balance sheet of PJSC LSR Group, with voting rights and no dividends to be paid on them. These shares might be either cancelled or used for the management incentive programme. The respective board of Directors decision is to follow later.
PIK announced an SPO. The company announced a public offering of quasi
94 RUSSIA Country Report October 2021 www.intellinews.com