June 7 (Bloomberg) -- OAO Novatek surged in Moscow and London trading as Russia’s second-biggest natural-gas producer said it would buy back as much as $600 million of stock within the next 12 months.
The shares gained 5.9 percent to 319.80 rubles by the close in Moscow, the most since July 2011. The stock rose 7 percent to $107 in London, the highest level since Oct. 6.
“It’s a very positive development and part of an increasing trend among Russian corporates to take advantage of mispriced equities,” Julian Rimmer, a trader at CF Global Trading UK Ltd. in London, said by e-mail. “It demonstrates confidence in their business and should reassure investors.”
Novatek plans to buy back shares and global depositary receipts within a year from today, the company said in a statement. The stock purchased under the program may be used for financing operations or in employee compensation and incentive programs, the company said.
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