(Kitco News) – Russia’s Nornickel, the world’s largest producer of palladium and high-grade nickel and a major producer of platinum and copper, announced Tuesday that its Board approved a buyback of up to 5,382,865 shares of the company, representing 3.4% of its issued outstanding shares, for a total amount of approximately USD 2 billion.
It is expected, the company said, that all shares repurchased by Nornickel will be cancelled in accordance with the procedures set forth in the Russian law following receipt of necessary corporate approval, except for the shares representing 0.5% of Nornickel’s issued and outstanding shares, which are expected to be used for the employee incentive purposes.
Nornickel noted that its Board believes that the company is currently undervalued by the market, which presents a good opportunity to run a share buyback.