KMG EP preferred share massive buyback programme to be completed on 31 January 2019
KazMunaiGas Exploration & Production (“Company” or “KMG EP”) would like to remind that the programme for massive buyback of preferred shares of the Company will be completed on 31 January 2019.
After 31 January 2019, KazPost offices will no longer be accepting requests from holders of preferred shares of KMG EP for their shares to be bought back.
The final special trading to repurchase preferred shares of the Company on the Kazakhstan Stock Exchange will take place between 14 January and 30 January 2019, and the final settlement date will be 31 January 2019.
After the final settlements are made on the Kazakhstan Stock Exchange on 31 January 2019, the KMG EP preferred share buyback programme will be fully closed.
The programme for buyback of preferred shares of the Company was launched on 13 August 2018 at the price of 12,800 per preferred share which at the time offered a premium of 24.4% to a 30-day average market price of preferred shares on the Kazakhstan Stock Exchange.
Initially, the completion date for the programme was 16 November 2018 but was then extended until 31 January 2019 as there were many requests from holders of small blocks of preferred shares of the Company.
To date, 5,461 requests for buyback of 1,143,251 preferred shares have been made and 14,633,612,800 tenge in total have been paid to holders of preferred shares.
The programme for buyback of preferred shares of KMG EP is not going to be extended. Immediately upon completion of the preferred share buyback programme, the Company will take further steps as part of restructuring KazMunayGas Group including winding-up of the subholding structure KMG EP.
Once the buyback programme is completed, preferred shares of the Company will be delisted from the Kazakhstan Stock Exchange within the timeframe established by existing laws. The delisting of preferred shares from the Kazakhstan Stock Exchange will result in a change in taxation of transactions with such shares.
As there is no steady demand for preferred shares from the Company, after 31 January 2019 the price for preferred shares at the Kazakhstan Stock Exchange may significantly change and may go down.
Preferred shares of KMG EP will not be exchanged into shares of National Company KazMunayGas as part of potential IPO of National Company KazMunayGas.
The Company would like to thank holders of preferred shares for their active involvement in the buyback programme.
Holders of preferred shares who have not yet taken part in the buyback programme but intend to do so should contact KazPost by 31 January 2019 as per the procedures that had been published earlier in respective memorandum of the buyback programme (http://kmgep.kz/rus/investor_relations/offer_for_redemption_of_prefer/).
Should any holder of preferred shares have any questions, please contact the following:
KazPost single contact center: 1499
KazPost: +7 7172 61 16 99, ext #1144
KazMunaiGas E&P: + 7 7172 97 75 79, e-mail: firstname.lastname@example.org
SkyBridge Invest, brokerage service: + 7 727 331 33 50, ext # 318.
Any further relations between the Company and holders of preferred shares should take place outside the buyback programme and are governed by applicable Kazakh laws.