Business
Terms of GDR Buy-Back Programme
Terms of GDR Buy-Back Programme.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n \nRNS Number : 8428C Zhaikmunai LP 22 April 2013 \n\n \nTerms of GDR Buy-Back Programme to Drive Shareholder Value\n \n \nAmsterdam, 22 April 2013. Zhaikmunai L.P (\"Zhaikmunai\" or the \"Partnership\") is pleased to announce the terms of a long-term GDR Buy-Back programme. 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.\n \nZhaikmunai, a leading independent oil and gas business engaged in the production, development and exploration of oil and gas in the former CIS, is pleased to announce that it is commencing a Buy-Back Programme with the intention to purchase up to US$ 50 million of its GDRs (the \"Buy-Back Programme\"). \n \nThe Buy-Back Programme has been approved by the Board of Directors of the General Partner (the \"Board\") in recognition of the Partnership'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. \n \nZhaikmunai generates significant free cash flow and has a robust balance sheet and excellent credit metrics. As at 31 December 2012, the Partnership had a cash and cash equivalent position of US$ 251 million and a net debt of less than 1x LTM EBITDA. As a result of this strong financial position, Zhaikmunai will allocate up to 10 percent of EBITDA on a quarterly basis to buying back GDRs.\n \nAs previously announced, on 28 March 2013 Zhaikmunai's limited partners approved by special resolution amendments to Zhaikmunai's Limited Partnership Agreement to allow for the implementation of the Buy-Back Programme and authorised the Board to implement a Buy-Back Programme for the period until the conclusion of the 2014 annual general meeting of limited partners.\n \nThe Buy-Back Programme is expected to initially continue for approximately 12 months and to involve maximum consideration of US$ 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.\n \nZhaikmunai remains ...