25.04.2012

HMS Group Board of Directors approved a long-term GDR Repurchase Program

Moscow, Russia – HMS Hydraulic Machines & Systems Group PLC (LSE: HMSG) announces that the Company’s Board of Directors approved at its ordinary meeting held at the Company’s registered address in Limassol, Cyprus, a buyback program in respect of Global Depositary Receipts («GDRs»), each representing one ordinary share of the Company. The buyback program will be submitted for final approval by the Company’s Extraordinary General Meeting (the «EGM»), which has been scheduled by the Board of Directors for May 21st, 2012. The Board of Directors has resolved to include this issue into the agenda of the EGM.

Under the terms of the proposed program, the aggregate amount that may be invested in the purchases of GDRs will be up to US$25 million. The purchases of GDRs pursuant to the Program will be conducted during the period from May 23rd, 2012 to May 23rd, 2015, unless terminated earlier by the Company, on the London Stock Exchange at prevailing market prices. The Company has no intention to cancel the GDRs acquired in the Program nor the underlying shares and may consider in the future selling the acquired GDRs.

Purchases pursuant to the buyback program will be conducted either by the Company or by its subsidiary (the “Purchaser”). The Purchaser intends to engage an independent broker to execute purchases of GDRs.

Commenting on the Program, Artem Molchanov, Managing Director (CEO) of the Company said:

"We are confident in the attractive fundamentals of HMS Group and our ability to deliver strong returns to our shareholders. The approved buyback is a long term support program that demonstrates our ongoing commitment to maximizing shareholder value as well as reducing the effect of external shocks on our share price.”


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The HMS Group is the leading pump manufacturer and provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. The HMS Group’s products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia’s core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. The Group reported revenues of RUB 20 billion, adjusted EBITDA of RUB 4.4 billion and profit for the period of RUB 2,9 billion for the nine months ended September 30, 2011. The HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.


For further information, please contact:

Sergey Klinkov
Head of IR 
Tel: +7 (495) 730-66-01, ext. 1302 klinkov@hms.ru
Nozima Karimova
Head of Press Service
Tel: +7 (495) 730-66-10
karimova@hms.ru

 

DISCLAIMER

THIS COMMUNICATION DOES NOT CONSTITUTE AN OFFER OF, OR THE SOLICITATION OF AN OFFER TO BUY OR SUBSCRIBE FOR, GDRs OR OTHER SECURITIES TO ANY PERSON IN ANY JURISDICTION TO WHOM OR IN WHICH SUCH OFFER OR SOLICITATION IS UNLAWFUL AND, IN PARTICULAR, IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR THE RUSSIAN FEDERATION.

THIS ANNOUNCEMENT IS NOT AN OFFER FOR SALE OF ANY SECURITIES IN THE UNITED STATES.  SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION UNDER THE US SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  THE HMS GROUP HAS NOT REGISTERED AND DOES NOT INTEND TO REGISTER ANY PORTION OF ANY OFFERING IN THE UNITED STATES OR TO CONDUCT A PUBLIC OFFERING OF ANY SECURITIES IN THE UNITED STATES.

THIS COMMUNICATION IS ONLY BEING DISTRIBUTED TO AND IS DIRECTED ONLY AT (I) PERSONS WHO ARE OUTSIDE THE UNITED KINGDOM OR (II) INVESTMENT PROFESSIONALS FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE “ORDER”) AND (III) HIGH NET WORTH ENTITIES, AND OTHER PERSONS TO WHOM IT MAY LAWFULLY BE COMMUNICATED, FALLING WITHIN ARTICLE 49(2) OF THE ORDER (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS “RELEVANT PERSONS”).  THE SECURITIES REFERRED TO IN THIS ANNOUNCEMENT ARE ONLY AVAILABLE TO, AND ANY INVITATION, OFFER OR AGREEMENT TO SUBSCRIBE, PURCHASE OR OTHERWISE ACQUIRE SUCH SECURITIES WILL BE ENGAGED IN ONLY WITH, RELEVANT PERSONS.  ANY PERSON WHO IS NOT A RELEVANT PERSON SHOULD NOT ACT OR RELY ON THIS DOCUMENT OR ANY OF ITS CONTENTS.