The government proposed a minimum price for the privatization of “Rosneft” – RBK

Photo: Reuters/Pixstream

the Minimum price for the privatization of 19.5% of “Rosneft” will be 710,85 billion rubles — 5% less than its market valuation October 11. The deal should be completed on December 5, and ten days later, the money will go to the budget

the Minimum price the privatization of 19.5% of Rosneft-owned “Rosneftegaz” will be 710,85 billion rubles, the press service of the Ministry of economic development.

This amount is calculated on the basis of quotations of the company on 11 October after the announcement of the purchase of a controlling stake in Bashneft “has implemented a synergistic effect” and the action “Rosneft” have considerably risen in price, said the Minister of economic development Alexei Ulyukayev (his words are in the message). The day before, 10 October, Prime Minister Dmitry Medvedev signed a decree on the sale to Rosneft of 50.08% of “Bashneft” for 329,69 billion rubles, and in two days the deal was completed. “After the statements of the President of the Russian Federation [Vladimir Putin] the synergetic effect of the acquisition and publishing of orders of the government of the Russian Federation of the action “Rosneft grew by 7.5% with the increase in the capitalization of the company at 260 billion rubles”, — reported a press-service “Rosneft”

“In the figures is as follows: 748,26 bn, multiplied by a factor of 0.95, which includes, in accordance with normal market practice, the minimum discount (5%),” — said Ulyukayev. That is, the minimum selling price of a package of “Rosneft” implies a discount of 5%. This transaction must be completed no later than December 5, and in ten days, no later than December 15, the money should be transferred to the budget “in the form of dividends” from Rosneftegaz, said the speaker.

on Monday morning it became known that on 3 November, Prime Minister Dmitry Medvedev signed a decree on the privatization of “Rosneft”. All information in the first paragraph of this document is secret — there is a mark “for office using”. The second paragraph cancels the order of the government dated 27 November 2014, which involved the privatization of 2 066 727 473 (19,5%) of the shares of “Rosneft” at the price not below market, defined on the basis of the report of the independent appraiser, and not below IPO price, the company held in 2006 (then one action “Rosneft” was estimated at RUB 203, and a receipt for one share at $ 7,55).

“the Ministry of economic development of Russia has made, and the government of the Russian Federation of 3 November 2016 issued a decree that sets out the approaches to determination of the price of the privatization transaction according to the package owned “Rosneftegaz” of shares of “Rosneft” 19,5%”, — said Ulyukayev. “The document, first, cancels the previous order of the government, which established the approach to the minimum transaction price to the price of the initial placement in rubles or in foreign currency. Second, it provides for new requirements for determining minimum prices,” he added.

At the meeting with members of the government on 12 October, President Vladimir Putin said that 19.5% of shares of “Rosneft” can buy the company itself, as a temporary measure. “Indeed, it was confirmed that the money in the accounts of the company [Rosneft] there are additional funds from the market, the Russian domestic financial market, the completion of all operations, including sales, and if necessary, temporary acquisition and redemption of shares “Rosneft”, the company does not have,” said he.

But savvycom of shares of “Rosneft” the new order is not provided, said Monday the speaker. “This order shows the price and the timing of the transaction”, — he explained. In late October, first Deputy Prime Minister Igor Shuvalov emphasized that the acquisition of shares of “Rosneft” is regarded only as a temporary measure in case of impossibility to receive money in the budget until the end of 2016. Then “Rosneft” will sell these shares to outside investors, he added.

on 1 November, the newspaper “Vedomosti” reported that now formed a pool of companies loyal to the Kremlin and willing to participate in privatization, in particular “Surgutneftegaz”, China’s Sinopec Kazakhstan and “KazMunaiGas”. According to the newspaper, the offer to participate in privatization received the head of LUKOIL Vagit Alekperov at a meeting with Putin on 31 October. But the press service of “Kasumigaseki” is denied, and Vice-President of LUKOIL Leonid Fedun refused to comment RBC. The press service of Sinopec, and “Surgutneftegaz” did not respond “Vedomosti”.

And Fund Energy, controlled by former energy Minister Igor Yusufov, November 2, proposed that a part of shares of “Rosneft” after slovikova to send stock options to management and staff. Sale of 19.5% Rosneft “can be carried out in the buy-back, when “Rosneft” will redeem their own shares, in the future, providing management and staff the options on some of these stocks as long-term incentives and motivation”, — stated in the message Fund, which, as “Rosneft”, claimed the purchase of a controlling stake of “Bashneft”. “This measure of motivation is widely distributed both in Russian and in international companies and can be an additional effective element, to increase capitalization of the company and its successful development,” he said.

Then, the press-Secretary of “Rosneft” Mikhail Leontyev refused to actually comment on this proposal. But a source close to “Rosneft”, called this option is unlikely. For such options would be enough of a package is less than 1%, as payments to managers of “Rosneft” is not comparable with the cost of this package, he said.