Energiya fund considers Rosneft offer on purchase of Bashneft the most attractive

Energiya fund considers Rosneft offer on purchase of Bashneft the most attractive

Rosneft can pay for this asset over $5 billion.

The fund Energiya of the former Minister of Energy Igor Yusufov, one of the contenders for the purchase of Bashneft, supports the Government's decision to continue negotiations on privatization of Bashneft in the near future and considers Rosneft’s offer on the deal the most attractive. This was reported on the website of the Fund.

“We believe that in the current situation, the most attractive offer was proposed by the company PJSC Rosneft, which can pay for this asset over $5 billion (which is the highest award for the Russian Government). It will allow PJSC oil company Rosneft to exceed inventories and hydrocarbon production and respectively will increase capitalization of the state company”, - it is said in the statement.

Also, according to the fund, in subsequent Rosneft will be able to redeem 19,5% of its shares within privatization at the price, which is over the offered by the market to $10 billion.

The Fund also noted that all investors are currently expecting conditions of auction or tender for sale of the owned by the Russian Government shares of Rosneft and Bashneft.

In August the Government of the Russian Federation decided to postpone privatization of 50,08% of shares of Bashneft, removing the transaction on sale of a state block of shares of Rosneft into the forefront. The first Deputy Prime Minister of the Russian Federation Igor Shuvalov then told journalists that the transaction on sale of shares of Bashneft would be carried out after implementation of 19,5% of Rosneft’s shares.

As previously reported, the investment consultant for the deal - VTB Capital - already sent to the Ministry of Economic Development the report with data of the appraiser on the cost of the state block of shares of the oil company. Nine companies showed their interest in the transaction, among them there are no directly foreign and state-owned companies. Officially, only Lukoil and Anti-Pinsk oil refinery reported about the submission of requests. Among applicants - the Russian Direct Investment Fund (RDIF) with partners, and also Tatneft, Tatneftegaz, Independent oil and natural gas company (IONGC), Russneft and Energiya fund of the ex-Minister of Energy of the Russian Federation Igor Yusufov. The application was also submitted by Rosneft possibility of participation of which had initially caused a lot of controversy.

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