Nov. 15 (Bloomberg) -- KGHM Polska Miedz SA, Poland’s sole copper producer, rallied to a two-month high on plans to buy back as much as 3 billion zloty ($921.6 million) of its shares.
The state-controlled company jumped as much as 6.5 percent to 174.2 zloty, the strongest intraday level since Sept. 8. It traded 4.7 percent higher as of 3:13 p.m. in Warsaw, helping Warsaw’s WIG20 Index erase its decline.
KGHM will seek shareholder approval for the buyback at a Jan. 19 meeting, the company said in a regulatory statement today. The copper producer plans to buy as much as 20 million shares, or 10 percent of its stock, for a maximum 190 zloty apiece. It will complete the purchase by the end of 2014, according to the filing.
KGHM’s shares are “undervalued” and don’t “reflect the full potential of the company on the market,” the Lubin, western Poland-based company, said. That applies to future projects “related to increasing its resource base and increasing investment in the energy sector,” it said.
KGHM will decide this month on an acquisition outside of Poland, Chief Financial Officer Maciej Tybura said on Nov. 10. Last month Chief Executive Officer Herbert Wirth said KGHM will bid for a Canada-based mining company.
--Editors: Stephen Kirkland, Peter Branton
To contact the reporter on this story: Piotr Skolimowski in Warsaw at firstname.lastname@example.org
To contact the editor responsible for this story: Gavin Serkin at email@example.com