Pacific Rubiales Energy Corp., the operator of Colombia’s largest oil field, gained the most in three weeks after saying it plans to buy back as much as 10 percent of outstanding shares not held by company insiders.
The shares rallied 3 percent to 38,280 pesos at 8:55 a.m. in Bogota after gaining 4.1 percent in the biggest intraday advance since April 9. Rubiales was the best performer on Colombia’s Colcap index, which dropped 0.6 percent.
Rubiales intends to start buying back as many as 31.1 million shares as the stock “may be undervalued from time to time in relation to its current and future business prospects,” according to a statement today. Some of the purchased shares may be held as an investment by the company’s pension fund, according to the statement.
The bid must be accepted by the Toronto Stock Exchange, where shares are also listed. The offering is scheduled to start on May 1 and may remain open until the end of April 2014.