Norilsk Nickel buyback offer oversubscribed

MOSCOW, Oct 29 (Reuters) - Russian miner Norilsk Nickel (GMKN.MM), which plans to buy back about 4 percent of its share capital for $1.8 billion, received tenders for nearly 14 times more shares than were on offer, the company said on Wednesday.

Norilsk, the world's largest nickel miner, said applications received from shareholders totalled 110,530,008 shares. The company has said it would buy back up to 7,947,000 shares.

"Shares will be purchased from shareholders on a pro rata basis to the number of shares tendered in the applications received," Norilsk said in a statement.

Norilsk said all shareholders whose applications had been accepted should sign an agreement with Norilsk's registrar before Nov. 27. Norilsk is ready to pay for the purchased shares within 15 days of the transfer.

The company made no mention of an injunction by a Siberian court freezing the buyback pending a final ruling in a case brought by one-quarter shareholder United Company RUSAL.

"We still have not seen any court documents," a Norilsk spokesman said on Wednesday.

UC RUSAL welcomed the court injunction on Tuesday and said it would use "all legal remedies" to cancel the buyback. To see a story, please double-click on [ID:nLS500049]

Norilsk's stock has been battered by falling nickel prices, investor flight from Russia and a conflict between its two main shareholders, UC RUSAL and billionaire chairman Vladimir Potanin. Its Moscow-traded shares have fallen 77 percent from May peaks to close at 1,700 roubles on Tuesday.

The buyback, announced on Aug. 22, is at a price of 6,167 roubles per share. If all the shares are bought, it would cost Norilsk 49.01 billion roubles ($1.79 billion). (Reporting by Robin Paxton and Aleksandras Budrys; Editing by Quentin Bryar)