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UPDATE 1-Russia's Lukoil says to buy back $2-3 bln of shares
May 30, 2012 / 3:07 PM / 6 years ago

UPDATE 1-Russia's Lukoil says to buy back $2-3 bln of shares

MOSCOW, May 30 (Reuters) - Russia’s no.2 oil producer Lukoil is considering a buyback of $2-$3 billion of its Moscow-listed shares to later sell them as part of a secondary share listing in Hong Kong.

The company said in a statement it would launch a secondary public offering of the shares in connection with the listing, and did not intend to issue new stock.

Lukoil vice-president Leonid Fedun told reporters in Hong Kong on Tuesday that the firm was planning the Far East listing, which it hopes will attract Asian investors.

The company’s shares were down 1.3 percent at 1551 GMT, in line with a falling overall market, valuing the group at around $44 billion.

Russian resources companies have long been expected to look to Hong Kong as a listing destination in order to be closer to main customer China as well as Asian investors.

Aluminium giant UC RUSAL blazed the trail with a $2.25 billion Hong Kong IPO in January 2010, but the subsequent weak performance of its shares and broader market uncertainty has stemmed the tide.

Lukoil, Russia’s largest non-state oil company, also has a secondary listing in London.

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