/update - adds background about buyback/
MOSCOW, October 16. /TASS/. The Board of Directors of Russian oil major Lukoil recommended that the Extraordinary General Shareholders' Meeting resolve to pay dividends for the first nine months of 2019 in the amount of 192 rubles per ordinary share and resolve to reduce the charter capital of Lukoil through acquisition of a portion of issued shares in order to reduce the total number thereof, the company said in a press release on Wednesday.
The issue of reducing the authorized capital has been put on the agenda of the extraordinary meeting of shareholders with the aim of redeeming shares acquired by Lukoil Securities Limited (100% subsidiary of the company) under the share repurchase program completed on August 20, 2019.
"Should the Meeting resolve on the matter, Lukoil Securities Limited will submit its Lukoil shares for sale. The purchase of the ordinary shares by the company will be implemented via a public offer according to Clause 1, Article 72 of the Federal Law "On Joint-Stock Companies" at a price of 5,300 rubles per share. The number of shares to be acquired is 25,000,000 shares. Acquisition of such a number of shares and their cancellation will reduce the charter capital of Lukoil to 690,000,000 ordinary shares," the company said in the press release.
The extraordinary meeting of shareholders will be held on December 3 in the form of absentee voting. The record date for the persons entitled to participate in the Meeting was set to November 8, 2019. The registration of shareholders for interim dividends ends on December 20. Dividends for the nine months of this year will be paid until February 2020.
On August 20, 2019, Lukoil announced the completion of its buyback program, announced on August 30, 2018. In total, 4.96% of the shares for a total of $3 bln were redeemed. The company additionally acquired 19.5 mln shares from minority shareholders as part of a public offer, spending $1.6 bln for this purpose.
Lukoil is a vertically integrated oil and gas company established in 1991. The main mining assets of the company are located in Russia. Lukoil has a full production cycle, including exploration, production, and oil and gas refining, production of petrochemical products and oils, electricity output, trade and marketing. The company's shares are listed on the Moscow Exchange, depositary receipts - on the London Stock Exchange.