Novoship Board authorises repurchase of its preference stock
On 10 December 2008 the Board of Directors of Novoship approved the repurchase of 50,112, 050 preference shares in the amount of RUB 1.1 billion (over USD 38.8 million). This amount represents approximately 10 per cent of the Company’s total issued share capital.
Shares will be purchased on a pro-rata basis at RUB 21.66 per preference share which is the weighted average price of Novoship shares traded on the Russian Trading System (RTS) over the past six months and is 20 per cent higher than the closing market price of Novoship’s preference shares at the date of the last trade.
Applications for Novoship’s share buy-back will be accepted from shareholders willing to sell their shares from 16 January 2009 to 16 February 2009. Cash payment for shares acquired through the offer must be made in accordance with the terms of stock purchase agreements but not later than 15 days after the shares are recorded on Novoship’s share register.
“The shares are being repurchased by Novoship to support the market in the Company’s shares and to prevent a future reduction of the share price, in the light of the current difficult credit market conditions. The offer provides a tax-efficient cash based exit for minority shareholders from what is otherwise is a very illiquid market. Shares repurchased will be reflected in Novoship’s balance sheet” – said Marlen Manasov, Novoship Independent Director and Head of Strategy Committee.
“We believe Novoship preference shares represent good value and an attractive investment proposition, and the company has sufficient liquidity to pursue this opportunity” - commented Nikolay Kolesnikov, Novoship Director and Sovcomflot EVP&CFO.
In the period to 2007 the Novoship, via its subsidiaries, repurchased from the market some 25 per cent of its shares including, 7 per cent of its preference shares. Novoship’s preference shares were admitted by the RTS for trading without passing through the listing procedure, from 27 March 2007. As of 16 October 2008, Novoship’s ordinary shares were delisted from the RTS.
Shareholders can find additional information regarding the share repurchase at Novoship website (www.novoship.ru) in the section marked ‘The Issuer’ as well as at the Registrar’s offices (CJSC National Registry Company).
Shares will be purchased on a pro-rata basis at RUB 21.66 per preference share which is the weighted average price of Novoship shares traded on the Russian Trading System (RTS) over the past six months and is 20 per cent higher than the closing market price of Novoship’s preference shares at the date of the last trade.
Applications for Novoship’s share buy-back will be accepted from shareholders willing to sell their shares from 16 January 2009 to 16 February 2009. Cash payment for shares acquired through the offer must be made in accordance with the terms of stock purchase agreements but not later than 15 days after the shares are recorded on Novoship’s share register.
“The shares are being repurchased by Novoship to support the market in the Company’s shares and to prevent a future reduction of the share price, in the light of the current difficult credit market conditions. The offer provides a tax-efficient cash based exit for minority shareholders from what is otherwise is a very illiquid market. Shares repurchased will be reflected in Novoship’s balance sheet” – said Marlen Manasov, Novoship Independent Director and Head of Strategy Committee.
“We believe Novoship preference shares represent good value and an attractive investment proposition, and the company has sufficient liquidity to pursue this opportunity” - commented Nikolay Kolesnikov, Novoship Director and Sovcomflot EVP&CFO.
In the period to 2007 the Novoship, via its subsidiaries, repurchased from the market some 25 per cent of its shares including, 7 per cent of its preference shares. Novoship’s preference shares were admitted by the RTS for trading without passing through the listing procedure, from 27 March 2007. As of 16 October 2008, Novoship’s ordinary shares were delisted from the RTS.
Shareholders can find additional information regarding the share repurchase at Novoship website (www.novoship.ru) in the section marked ‘The Issuer’ as well as at the Registrar’s offices (CJSC National Registry Company).