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The buyback will include 21% of the company's issued share capital at a buyback price of 33p per share, a 42% discount to the May 2 closing middle market price.
The same shareholders, Destin Investment Management and UFG Private Equity Fund I, will then also sell a further 10.4% of shares to other UFG Group members, directors and new investors to benefit shareholders as a whole.
Trans-Siberian said its directors believed the proposed buyback would lead to a more efficient capital structure and maintain a strong balance sheet and continuation of the dividend policy.
The company will fund the buback using existing distributable profits and a term loan facility with VTB Bank of up £9.4 million. It expects the facility to be executed shortly.
It said the buyback was conditional on the finalisation of the debt financing and shareholder approval at a June general meeting.
After the buback, UFG will still be Trans-Siberian's largest shareholder.
Trans-Siberian CEO Alexander Dorogov said the transaction created an great opportunity for the company to acquire shares at an attractive discount in a carefully managed way to avoid market turbulence and provides significant flexibility in the management of its capital base to create value for all our shareholders.
The company's shares slipped 3.51% Friday to 55p, up from 35p at the start of the year.
