En+ Will Buy Back Its Shares from VTB for $ 1.6 Billion
“En+ Group will redeem 136 511 122 shares from VTB Group for cash at a price of $ 11.57 per share, which means a significant discount to the fundamental value of the company”, the statement said. Thus, the entire package was valued at $ 1,579 million. According to the results of trading on the London Stock Exchange on Wednesday, February 5, one share of En+ cost $ 11.6, and its capitalization amounted to $ 7.4 billion.
The En + report notes that the repurchase of VTB's stake in the company will simplify its shareholder structure and will not violate Lord Barker's plan, which allowed the company to be withdrawn from the sanctions of the U.S. Treasury in January 2019. Back in February 2019, Barker himself told Interfax that VTB would be able to sell this package on the market without the consent of OFAC, it would be enough to notify the US regulator about the deal.
“This deal willn't violate tough agreements with the US Treasury and, therefore, will not lead to negative consequences for the parties”, Alexander Zakharov, partner of Paragon Advice Group, told the Russian media. “I think it can simplify the very structure of holding shares”, he added.