Russia’s second-largest oil producer Lukoil PJSC aims to buy out as much as 25% of its shares from foreign investors, using funds accumulated on its bank accounts abroad, Interfax reported citing unnamed people familiar with the situation.
(Bloomberg) — Russia’s second-largest oil producer Lukoil PJSC aims to buy out as much as 25% of its shares from foreign investors, using funds accumulated on its bank accounts abroad, Interfax reported citing unnamed people familiar with the situation.
The producer, which has submitted the buyback request to Russian authorities, aims to purchase the shares, including depositary receipts, at a discount of at least 50%, according to Interfax. Earlier this summer, Russian retailer Magnit PJSC repurchased nearly 17% of its shares from foreign investors at a discount.
Lukoil did not immediately respond to a Bloomberg request for a comment.
Lukoil’s current market capitalization is around 4.6 trillion rubles ($48.8 billion), indicating a current market price for a quarter of the shares at around 1.15 trillion rubles.
The producer’s shares on the Moscow Exchange rose as much as 6.7%, the most since last September, and were trading at around 6,663 rubles per share as of 5:05 p.m. in Moscow.
(Updates with market cap and share price figures in the fourth and fifth paragraphs)
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