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Nornickel’s Board Approves a $2 Billion Buyback

Press Launch

up to date: Apr 28, 2021 12:00 EDT

Nornickel, the world’s most significant producer of palladium and large-quality nickel and a major producer of platinum and copper, declared that its Board of Directors has permitted a buyback of up to 5,382,865 shares of the Business, representing 3.4{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of its issued excellent shares, for a total amount of money of approximately USD 2 billion.

In accordance with the greatest corporate governance techniques, this buyback will be carried out by repurchase of up to 5,382,865 of its shares (the “Utmost Selection of Shares”) pursuant to Article 72, para. 2 of the Russian Joint-Inventory Firms Law (the “Buyback”). The repurchase cost is RUB 27,780 for every 1 share. All holders of the Firm’s popular shares are suitable to take part in the buyback by submitting apps to sell their shares from May 20, 2021, to June 18, 2021. The shares will be paid in Russian rubles by July 3, 2021.

Holders of the American depositary receipts (ADRs) will have to cancel their ADRs and receive the underlying shares in order to be able to tender these kinds of shares in the buyback, as outlined in the information letter addressed to ADR holders at https://www.nornickel.com/ on the Buyers web page.

If the combination selection of all shares in respect of which shareholders post apps to sell exceeds the Highest Number of Shares, the quantity of shares which will be repurchased by the Company will be determined on a pro rata basis.

The shares, which will be repurchased by Nornickel, will not grant voting legal rights or rights to receive dividends and will not be taken into account throughout the voting at a general shareholders’ meeting. All shares repurchased by Nornickel are anticipated to be cancelled in accordance with the Russian legislation, besides for .5{46dd52bca0123ad67b2d1222819e83fd0a56e45ca5068239f05f0c514f1e20f9} of Nornickel’s issued and exceptional shares, which are predicted to be used for staff incentive reasons.

The Board Chairman, Gareth Penny, commented: “The Board of Directors believes that the Organization is currently undervalued by the sector, which provides a good prospect to run a share buyback. As it is customary for this style of transaction, most of the shares will be canceled afterward with the exception of the stock to be used for the staff incentive needs. The Board additionally welcomes the initiative to use shares to incentivize the staff as this is in line with the best international criteria.”

In the class of its evaluation of the buyback, the Board of Directors deemed Nornickel’s effectiveness and economic affliction, market place positions of Nornickel’s shares on the Moscow Trade, analysts’ projections and approximated cost targets, opportunity results of the buyback and other pertinent elements. UBS acted as an exclusive monetary adviser and Debevoise & Plimpton LLP acted as legal adviser.

For a lot more aspects, please refer to the observe on the Investors page at https://www.nornickel.com/.

Supply: MMC Norilsk Nickel