Nord Gold EGM on 30 January to consider capital reduction via share cancellation; could conduct 5% share buyback
Nord Gold N.V. (“Nordgold” or the “Company”, LSE: NORD), the internationally diversified, low-cost gold producer, announces that it will hold an Extraordinary General Meeting ("EGM") of the Company’s Shareholders at Strawinskylaan 10, 1077 XZ Amsterdam, Netherlands on Friday January 30, 2015, at 10.00 am CET.
The purpose of the meeting is to delegate to the Board of the authority to acquire shares and depositary receipts thereof in the capital of the Company and to consider a proposal to reduce the capital of the Company by the cancellation of up to 19,000,000 of its shares held in treasury.
Notice of EGM and related documents (including proxy forms) are now available on the Company's website at www.nordgold.com.
Nordgold has submitted the Notice of EGM and Proxy Forms to the UK National Storage Mechanismpany.
According to Russian daily Vedomosti, which reported on this development today, next year Nord Gold could buy back 5% shares and cancel them.
A company spokesperson has not revealed whether Nord Gold’s main shareholder, Alexey Mordashov, will participate in the share buyback, Vedomosti reported.
As on 30 September, the company had USD 336m in cash and equivalents on its accounts, the article reported.
The paper also cited experts, and reported that the idea to reduce the company's liquidity may be for the purpose of subsequently delisting Nord Gold. One expert suggested that in the future, the main shareholder may sell part of the company, adding that Chinese investors are interested in buying the African assets of Nord Gold.
Nord Gold, where Mordashov owns 86.3%, has a market capitalization of USD 548.3m, the item reported.