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Rosneft set to offer buyout to TNK-BP minority shareholders

BY JAMES MARSON and OLGA RAZUMOVSKAYA

MOSCOW -- OAO Rosneft will offer a buyout to the minority shareholders of OAO TNK-BP Holding, in which it acquired a majority stake this year from BP PLC and a consortium of tycoons, Rosneft' s chief executive Igor Sechin has said.

Mr. Sechin said at the International Sochi Investment Forum that the price would be based on the average that TNK-BP Holding' s shares have traded at over the past 18 months, which is likely to mean a premium of 20%-30% above current prices.

State-controlled oil giant Rosneft acquired a 95% stake in TNK-BP, Russia' s third-largest oil company, on March 21 in deals worth $60 billion, becoming the world' s largest listed crude-oil producer. The minority shareholders who hold the rest, including international investment funds, had hoped for a large dividend or a buyout on similar terms. Rosneft had for months maintained there would be no buyout.

Mr. Sechin announced the buyout plan after Russian Prime Minister Dmitry Medvedev said Friday state companies should lead the way in creating attractive conditions for investors. Mr. Medvedev called on Rosneft to buy out the TNK-BP minorities. "If you are prepared to do it, I' ll sign the relevant order today," he said.

Mr. Sechin responded that Rosneft would "fulfil the task" that Mr. Medvedev set and that the board would "consider and take the necessary decision in the near future."

TNK-BP Holding shares jumped 12.8% on the announcement.

Dow Jones Newswires

09/27/2013

 

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