OREANDA-NEWS. On March 31, 2014 KTK (MICEX: KBTK), one of the leading producers and exporters of thermal coal in Russia announces the creation of motivation fund for management and plans for an SPO.

The Human Resources and Remuneration Committee on behalf of the Board of Directors conducted an analysis of option programs used in Russia and abroad. As a result of this work has been developed option program for long-term motivation of Company’s management. In Q1 2014, key executives received shares of the Company bought through the stock exchange, and signed a special agreement, including a moratorium on the sale of securities within three years.

Option program corresponds to the accepted international standards, aimed at long-term motivation of management on the achievement of key performance indicators including profits and market capitalization set by Board of Directors of the Company. It provides committee with the opportunity to track the development of each manager. - commented Independent Director, Member of the Board of Directors of KTK Yuriy Fridman.

Igor Prokudin, controlling shareholder and CEO of KTK decided to conduct an SPO in the next three years. More than 15.6% of Company’s shares owned by management will be offered to investors, half of the share capital will be in a free-float. Opportunity to sell shares in this transaction will be provided to existing minority shareholders. Stock exchange for secondary placement will be determined based on the conditions of capital markets.

4 years passed since the IPO, and we can summarize and make an analysis of the Company’s efficiency. I am proud to note that all the commitments made during the IPO, the Company fulfilled. Dynamics of development of the Company shows a significant improvement in the key performance indicators. We increased production, have significantly improved the quality of coal by launching 2 washing plants, gradually increasing coal reserves by developing new open-pit mines, modernized mining equipment. Because of falling prices for thermal coal in the global markets since the second half of 2012 Company’s net income and market capitalization decreased. Now we have a situation when Company is significantly undervalued by the market. One of the measures to improve the Company's capitalization and liquidity of shares is to conduct a secondary public offering. Dynamics of the Company’s development contributes to this. Therefore, immediately upon the occurrence of a favorable market situation, we will start the preparation and implementation of measures for secondary placement. I think that for many of our existing minority shareholders it will be a good occasion to fix the profit and invite all stakeholders to participate in this important for the KTK event. — said Igor Prokudin.