On 27 July 2020, the deadline for bids in response to the voluntary offer by AO Volzhsky Pipe Plant to purchase TMK’s ordinary registered uncertificated shares has ended.
BCS Global Markets acted as the dealer manager along with UBS, which was also TMK’s financial consultant.
The number of shares that were submitted for acquisition is 229,958,764 of outstanding shares, or around 22,3% of TMK’s authorized capital.
The voluntary offer was made following the decision by TMK’s Board of Directors dated 8 April 2020 to approve the buyback programme through Volzhsky Pipe Plant’s offer.
The voluntary offer covered 358,758,064 ordinary shares that represent all the ordinary shares, except for the ordinary shares that belong to Volzhsky Pipe Plant and its affiliated persons, including some of TMK’s subsidiaries, the holder of TMK’s controlling stake (TMK Steel Holding Limited), and some of the members of the Board of Directors and senior managers at Volzhsky Pipe Plant, TMK and TMK Group. The voluntary offer has been forwarded by Volzhsky Pipe Plant to all the holders of TMK’s ordinary shares, excluding the individuals and legal entities mentioned earlier.
The offer price has been set at 61 roubles per one TMK’s ordinary share.
You can find more info at TMK’s website https://www.tmk-group.ru/voluntary_tender_offer
“At a time of turbulence at global markets, the transaction has allowed minority shareholders to quit with a significant premium to the price on the exchange. The premium to the price before the announced decision on the buyback by TMK’s Board of Directors was more than 30 percent, and 17.6 percent versus a six-month weighted average price. The terms were viewed positively by the market, and investors took an active part in the buyback”, said Evgeny Sokolsky, Head of Investment Banking at BCS GM.
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