Buybacks of Russian Securities
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Key takeaways:
- Given the slowdown in economic growth in Russia and in light of recent geopolitical events, Russian companies may consider their securities to be undervalued and may desire to explore potential buyback scenarios for their securities.
- Buybacks can serve a variety of purposes: distributing excess cash to shareholders; providing a liquidity event to dissenting shareholders in connection with significant corporate events (including delistings); or allowing a company to acquire liquid securities at an attractive valuation for use in future M&A transactions or employee option programs.
- Apart from Russian law requirements, a Russian company which has U.S. or EU investors or has a listing of depositary receipts on a European exchange should also be mindful of U.S. and EU regulations related to buybacks.