Globaltrans Convenes EGM on GDR Buyback of up to 5%
Globaltrans Investment PLC (together with its consolidated subsidiaries the “Company”, “Globaltrans” or the “Group”, LSE ticker: GLTR) today announces that its Board of Directors (“Board”) has convened an Extraordinary General Meeting of shareholders (“EGM”) in order to consider an open market buyback programme for up to 5% of Globaltrans’ share capital. The Company currently does not hold any of its own shares.
The EGM, to be held on 12 May 2020 at 1:00 pm (Cyprus time) at 4 Profiti Ilia Street, 4046 Germasogeias, Limassol, Cyprus, will determine whether to approve a buyback programme of the Company’s Global Depositary Receipts (“GDRs”) listed on the Main Market of the London Stock Exchange for a period of twelve months following the EGM (the “Programme”). The maximum number of GDRs repurchased under the Programme will not exceed 5% of the Company’s share capital (equivalent to 8,937,046 shares).
Sergey Maltsev, Chairman of the Board, co-founder and shareholder said: “Globaltrans is a financially robust, highly cash generative business with low levels of indebtedness. Our priority remains to return excess capital to shareholders in the form of dividends, as evidenced by our recent announcement of a record 2019 total dividend and commitment to a 2020 interim dividend target of about RUB 8.3 billion.
Nonetheless, in the current environment, instances may occur when our return criteria are better met by way of a GDR buyback than through investment in fleet expansion. This programme would allow us to tap such opportunities at various points should they arise. External conditions and the financial position of the Group will of course be taken into consideration at all times.”
The launch of the Programme, if approved, will be announced separately. Purchases will be carried out in compliance with the relevant conditions for trading, restrictions regarding pricing, timing and volume, and may take place in multiple instalments over the course of the Programme with details of these purchases released via the Regulatory News Service of the London Stock Exchange and published on the Company's corporate website. The Company may appoint an independent third party to carry out the Programme as an agent or independently of the Company.
In line with relevant legislation, GDRs repurchased by the Company may be held in treasury for up to two years.
Full details of the applicable EGM resolution is available for viewing here.
Globaltrans Investor Relations
Mikhail Perestyuk / Daria Plotnikova
+357 25 328 860
For international media
+44 7799 413351
NOTES TO EDITORS
Globaltrans (together with its consolidated subsidiaries “Globaltrans” or the “Group”) is a leading freight rail transportation group with operations across Russia, the CIS and the Baltic countries. The Group operates one of the largest railcar fleets in the region, comprised mainly of universal gondola cars capable of carrying a wide range of bulk cargoes, and tank cars for oil products and oil. The Group’s sophisticated logistics capabilities add value to more than 500 customers including leading industrial groups serviced under extensive outsourcing contracts.
The Group had a Total Fleet of 70.7 thousand units at the end of 2019 of which about 96% were in ownership with an average age of 11.5 years. In 2019, the Group’s Freight Rail Turnover (including Engaged Fleet) was 161.5 billion tonnes-km with the total revenue amounting to RUB 95.0 billion.
Globaltrans is an entrepreneur founded and led group with its Global Depositary Receipts (ticker symbol: GLTR) listed on the Main Market of the London Stock Exchange since May 2008.
To learn more about Globaltrans, please visit www.globaltrans.com.
Some of the information in this announcement may contain projections or other forward-looking statements regarding future events or the future financial performance of Globaltrans. You can identify forward-looking statements by terms such as 'expect', 'believe', 'anticipate', 'estimate', 'intend', 'will', 'could', 'may' or 'might', the negative of such terms or other similar expressions. Globaltrans wishes to caution you that these statements are only predictions and that actual events or results may differ materially. Globaltrans does not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in projections or forward-looking statements of Globaltrans, including, among others, general economic conditions, the competitive environment, risks associated with operating in Russia, rapid technological and market change in the industries Globaltrans operates in, as well as many other risks specifically related to Globaltrans and its operations.