Novatek decides fate of its own shares, purchased during the buyback program
Novatek plans to use its shares, purchased on the market, in its option program, the company’s CEO and major shareholder, Leonid Mikhelson reported. "We consider to prolong the option program, using the company's shares in order to stimulate the management," - he said.Novatek’s representative doesn’t disclose details of the program. "It is still being considered," - he explained. In 2013, the fees for members of the Board of Directors and management of Novatek in was 1.7 billion rubles. (+18.3% as compared with 2012).
On May 27th, Novatek announced the prolongation of the buyback program for another year - until June 7th, 2015 – with the same terms of redemption. At that time the company had bought 0.46% of its own shares (14.2 million). Novatek spent approximately $150 million for the buyback, analyst of Uralsib Capital Alexei Kokin calculated. "It is logical and expected decision," - the analyst of Raiffeisenbank, Andrei Polishchuk believes. According to him, it doesn’t make sense for the company to cancel the treasury shares. "Many companies do this with the repurchased shares," - he said. "This is a usual practice in the West," - director of East European Gas Analysis, Mikhail Korchemkin agrees.