Kazakh Zhaikmunai starts GDRs Buy-Back Programme
Azerbaijan, Baku, April 2 / Trend E. Kosolapova/
Zhaikmunai L.P, the oil and gas exploration and production enterprise with assets in north-western Kazakhstan is commencing a GDRs Buy-Back Programme with the intention to purchase up to $50 million of its GDRs, the company reported on Monday.
"The programme will commence following the release of Zhaikmunai's unaudited consolidated accounts for the first quarter ended 31st March 2013 expected in the week of May 13, 2013," the company said.
The Buy-Back Programme has been approved by Zhaikmunai's Board of Directors in recognition of the company's strong financial position and significant cash generating abilities. In addition, the Board believes that acquiring GDRs at current levels, which are at a significant discount to fair value, represents an excellent value proposition for Zhaikmunai security holders as a whole.
The Buy-Back Programme is expected to initially continue for approximately 12 months and to involve maximum consideration of $50 million. Thereafter, proposed annual extensions to the duration of the Buy-Back Programme may be submitted by the Board to the limited partners for approval.
"The objective of the Buy-Back Programme is to reduce the number of issued GDRs of the Partnership and repurchased GDRs may also be used to meet obligations arising from Zhaikmunai's employee share option plan," the company said.
Purchases of GDRs pursuant to the Buy-Back Programme will be conducted by Zhaikmunai's brokers, Deutsche Bank AG, London Branch ("Deutsche Bank") and VTB Capital plc ("VTB Capital"), acting on its behalf in accordance with the requirements of the FCA's Code of Market Conduct in respect of buy-backs of listed securities.
Zhaikmunai is an independent oil and gas enterprise currently engaging in the exploration, development and production of oil and gas. It is listed on the London Stock Exchange (Ticker symbol: ZKM). Its principal producing asset is the Chinarevskoye Field located in north-western Kazakhstan.