Source - RNS
RNS Number : 4357M
Rosneft Oil Company
13 October 2016
 

ROSNEFT CLOSED THE DEAL ON ACQUISITION OF

THE GOVERNMENT'S STAKE IN BASHNEFT

 

INVESTMENT STORY AND SYNERGIES WERE HIGHLY VALUED - MARKET CAPITALISATION GREW BY RUB 260 BLN

 

LIQUID HYDROCARBON PRODUCTION INCREASED BY 10%,

REFINING THROUGHPUT - BY 20%

Under the Government of the Russian Federation Decree dated October 10, 2016 Rosneft carried out necessary corporate actions to prepare for and execute the acquisition of the Government's stake in Bashneft Public Joint Stock Company representing 50.0755% of its charter capital.

The Company Board of Directors unanimously approved Rosneft's potential entry into Bashneft equity. In accordance with the BoD resolution Igor Sechin, Rosneft Chief Executive Officer, signed the Sale and Purchase Agreement of 88 951 379 Bashneft shares for RUB 329.69 bln.

On October 12, 2016 Rosneft fully met its obligations under the agreement, by paying RUB 329.7 bln to the accounts of the Federal Treasury. The deal for the acquisition of the controlling share of the Company is closed.

After the Russian President noted potential synergies from the deal and the Government Decree was released Rosneft stock price increased by 7.5% with the corresponding RUB 260 market cap growth. Therefore the first phase of the integrated deal maximizing budget revenues from the sale of the state owned oil and gas assets included in the Privatization Program for 2016 was successfully completed.

The deal was strongly appreciated by the investment community for the expansion of the Combined Company to the new crude oil and petroleum product production and supply areas, Rosneft adding 10% of liquid hydrocarbon production and 20% of refining throughput as well as for significant synergies arising from optimization of mutual oil supplies, transport and logistics costs, drilling cost reduction and joint use of production assets' infrastructure, modern technologies and know-how.

The integration of Bashneft assets into Rosneft operational perimeter will be implemented in strict compliance with the Russian law.

Rosneft Information Division
Tеl.: +7 (495) 411 54 20
Fax: +7 (495) 411 54 21
October 12, 2016

These materials contain statements about future events and expectations that are forward-looking in nature. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements expressed or implied by such forward-looking statements to differ. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

 


This information is provided by RNS
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