Russia Polyus Gold examines share buyback
MOSCOW, Feb 3 (Reuters) - Russia's top gold producer, Polyus Gold (PLZL.MM) (PLZLq.L), said on Tuesday its board had instructed management to explore the possibility of buying back shares worth up to $250 million.
"The decision to effect the buyback of the Company's shares is still pending and there can be no assurance that the Board of Directors will approve any such buyback or, if the buyback is approved, what the timing, price and other terms of such buyback will be," a Polyus statement said.
The management has to prepare a proposal on the buyback within the next three weeks, it said.
In September 2008, a report that Polyus' management supported a buyback of its shares sent the company's stock prices sharply up. [ID:nLH557032]
Later in September, however, Polyus' board voted against the buyback and approved the acquisition of a controlling stake in Kazakhstan's top gold miner, KazakhGold (KZGq.L), instead. [ID:nLU641699]
Polyus' major shareholders are ONEXIM, an investment fund owned by tycoon Mikhail Prokhorov, and Interros, an investment vehicle of another tycoon, Vladimir Potanin. Each holds around 30 percent of its shares.
Polyus produced 1.2 million ounces of gold last year.
The board has also approved Polyus' investment programme for 2009 of 8.4 billion roubles ($232.2 million), the statement said. ($1=36.17 Rouble) (Reporting by Aleksandras Budrys; editing by Simon Jessop)
