Page 107 - RusRPTNov21

8.3.3 ECM news
BSPB announced on 8 October, that the bank is preparing to buy back a 2.9% stake for an estimated RUB 1.024bn. The buyback price was set earlier at RUB 75/ord. We view the buyback as marginally negative, as the free float of BSPB's ordinary shares is likely to grow smaller depending on which of BSPB's shareholders take part in the buyback. However, BSPB's management signaled earlier that going forward, it could increase distributions to shareholders via buybacks and/or dividends, which could offset the negative impact of a lower free float on the stock. We maintain our BUY on BSPB thanks to the drop in its cost of risk this year and the growth in its core revenue. BSPB trades at 2021E-22E P/BVs of 0.4x-0.4x, on our estimates, despite aiming for an ROE of more than 15% this year.
Novatek purchased 478,970 shares and GDRs over 11-15 October as part of its buyback, the company announced yesterday, 18 October. NVTK spent c. $12.7mn, implying an average price of $265.7/GDR. This is the third week of purchases (though not consecutive) in 2021, and the company has spent a total of c. $436mn out of the $600mn allocated to the buyback.
Novatek purchased 1,083,464 shares and GDRs for c. $28mn during the week of 25-29 October, the company announced yesterday, 1 November. The average price was c. $258.5/GDR.
Recruitment company HeadHunter acquires a stake in YouDo. YouDo is one of Russia’s largest online service marketplaces, with c. 9mn verified users. The service helps consumers and businesses to find and hire freelancers. We see the acquisition as marginally positive for HHR. In our opinion, the deal is complementary to HHR’s existing competencies and is in line with the company’s strategy to expand into new product areas across the HR value chain.
UGMK has filed an application with Russia’s Federal Antimonopoly Service (FAS) to buy a 100% stake in GV Gold (PAO Vysochaishy). UGMK is a privately held producer of copper and zinc with exposure to copper, zinc and coal. GV Gold, which has assets in Russia’s Yakutia and Irkutsk regions, is one of Russia’s top 10 gold producers (2020 gold production of 272koz) and has JORC-compliant Ore Reserves of 5.3mnoz with an average grade of 1.2g/t.
107 RUSSIA Country Report November 2021 www.intellinews.com