The major shareholders of Nornickel, Interros, UC RUSAL and Crispian, have reached a preliminary agreement to support and propose to Nornickel's Board of Directors a buyback of Nornickel's shares for a total amount of approximately $2bn before the end of 2021, Nornickel informed.
The goal of the share buyback is to support the company's market capitalization. The major shareholders consider the buyback expedient when the company is fundamentally undervalued by the market and as a preparation for the launch of a long-term employee compensation program, the statement notes.
It is expected that 0.5% of Nornickel's shares outstanding will be allocated for the employee compensation program.
PJSC MMC Norilsk Nickel (tax number: 8401005730) is Russia's largest diversified mining and metallurgical company, the world's leading producer of nickel and palladium and one of major platinum, rhodium, copper and cobalt producer. Besides, the company produces a wide range of by-products including gold, silver, tellurium, selenium, iridium and ruthenium. The mining and processing assets of the MMC Norilsk Nickel group are located in the Norilsk industrial area, the Kola Peninsula as well as Finland, USA, Australia, Botswana, and RSA.
IFRS net profit of MMC Norilsk Nickel for 2020 decreased by 39% to $3.63 billion. Consolidated revenue increased 15% to $15.55 billion, EBITDA decreased by 3% to $7.65 billion.
