Nordgold offers to buy GDRs from minor owners under LSE delisting

MOSCOW, Feb 9 (PRIME) -- Gold mining company Nordgold, controlled by Russian businessman Alexei Mordashov, has offered to buy out global depositary receipts (GDRs) from minority holders at U.S. $3.45 per security due to a planned delisting from the London Stock Exchange (LSE), the company said in a statement on Thursday.

The company said, explaining the reasons for the delisting, that the market capitalization does not reflect a fair price of its securities. A low trading volume and a general GDR liquidity deficit are the main reason for that.

The buyback price is weighted average for five previous trading sessions. The acquisition will be carried out from Thursday until March 16.

The shareholders of the company will have a chance to sell the securities at this price four more times: after publication of financial reports for January–June 2017, for the entire 2017, for January–June 2018, and for the entire 2018.

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