Gold mining company Solidcore Resources has completed a share buyback of nearly $1.2 billion. Shareholders tendered more than 103 million shares, exceeding the set limit of 102.9 million. The buyback price was $11.66 per share.
The company intends to complete settlements with shareholders as soon as possible. After that, Solidcore’s treasury holding will reach 226.3 million shares, and the number of voting shares will stand at 340.2 million. Repurchased shares carry no voting rights and pay no dividends. There are no plans to cancel them for now.
The stake of key shareholder Maaden International Investment SPC will rise to 41.3% of share capital following the transaction.
Solidcore is among Kazakhstan’s largest gold producers and owns the Kyzyl deposit. The company previously announced it will locate its headquarters in Astana, in the nine-story Muscat Tower business center. Oman’s sovereign fund will finance 85% of the construction of the building.
A buyback of this size noticeably changes Solidcore’s capital structure and strengthens the position of its main shareholder. For the market, it is a signal that the company is ready to invest free cash in its own shares, not only in mining.
Source: NBK.kz
Image: Solidcore Resources
