Wednesday, December 7, 2016

Sechin went abroad in search of buyers of 19.5% of “Rosneft” – RBK

the Head of “Rosneft” Igor Sechin.

Photo: Alexei Nikolsky/RIA Novosti

As it became known to RBC, in anticipation of the privatization of 19.5% of “Rosneft” its chief Executive officer Igor Sechin went to trips abroad with the aim of finding potential buyers. This package must be sold for a week at least $ 11 billion.

the Head of “Rosneft” Igor Sechin and the first Vice-President of Economics and Finance Pavel Fedorov in the last few weeks was in overseas mission, they met with potential candidates of 19.5% of “Rosneft”, which should be privatized within a week, until 15 December. About RBC told the acquaintance of the top Manager and the Federal official confirmed.

that is why Sechin was not delivering the Message of President Vladimir Putin to the Federal Assembly on 1 December in the Kremlin (there usually invite the representatives of big business), says one of the interlocutors RBC. Last week the head of “Rosneft” was flying on a business trip abroad — it was not all week, said a source close to the Board of Directors of “Rosneft”. “If you know [where they were Sechin], we will understand who is the buyer,” says an acquaintance of the top Manager.

a Source close to Rosneft said that one of the points, where last week the head of the company, is China. Official confirmation of this information could not be obtained.

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Press Secretary of “Rosneft” Mikhail Leontyev refused to comment, the press office did not respond to the official request of RBC.

the Deal to sell 19.5% of Rosneft shares at least 710,8 billion rubles (about $ 11 billion) was to be implemented until 5 December, it was said at the disposal of the government, which in early November signed by Prime Minister Dmitry Medvedev and the Directive to state representatives in the Board of Directors of “Rosneftegaz” (which owns 69.5% of Rosneft, 19,5% of which is for sale), signed by its first Deputy Igor Shuvalov. The second deadline, according to these two documents, — next Thursday, December 15 when the money from the deal must come in the budget. The money from the sale of 19.5% of “Rosneft” will go to the budget by this date, stated on the eve of 6 December, the press Secretary of the President of Russia Dmitry Peskov. “We believe that this deadline will be met,” he said. Peskov added that the situation with the privatization of Rosneft “is developing according to plan,” “the progress of its development an d agreed with the President and with the government.”

According to one of interlocutors of RBC, Sechin could not only find a buyer by 19.5%, but to negotiate a better price. According to the source, this package can be sold for $ 12 billion in Other sources this amount is not called. On Wednesday on the London stock exchange of 19.5% of Rosneft was worth $ 11.4 billion (at 17:19 GMT).

Chairman of the Board of Directors of CNPC Wang Yilin, in may, said that his company is interested to participate in the privatization of “Rosneft”, but only on the condition that she will be able to participate in the management of the company in accordance with their shares. However, the Directive to the state representatives in the Board of Directors of Rosneftegaz, which in July signed Shuvalov, suggests that the purchaser of 19.5% must enter into a joint agreement with the Federal property management Agency or “Rosneftegaz” and to vote for candidates from the state to the Board of Directors of the oil company. That is, these restrictions do not involve full participation in the management of the company.

In early November, the newspaper “Vedomosti” reported with reference to its sources that the government formed a pool of companies loyal to the Kremlin and willing to participate in the privatization of 19.5% of “Rosneft”, in particular “Surgutneftegaz”, China’s Sinopec Kazakhstan and “KazMunaiGas”. According to the newspaper, the proposal was also sent to the LUKOIL. But later, representatives of LUKOIL and KazMunaiGas denied it, the press service of Sinopec, and “Surgutneftegaz” did not comment.

assistant to the President and Chairman of the Board of Directors of “Rosneft” Andrei Belousov last week said that the government is still considering two options for the privatization of shares of “Rosneft” — “or it will be the investor, or it will be buy-back”. But with a proposal about the format of the transaction should go, first of all, the management of the company, he stressed. In order to clarify the situation, he even sent a letter to Sechin. He replied in a December 1 deadline. “All we have complete clarity. [The management] answer those questions that I had as Chairman of the Board of Directors of Rosneft, Igor Ivanovich [Sechin] answered,” the official said, refusing to specify the details of the transaction.

the Option savvycom of shares of “Rosneft” (the buyout) was confirmed by Putin, but called it “intermediate”: the company will help to replenish the budget, and then resell the shares to third party investors. However, for transactions over $ 1.5 billion and above must be approved by the Board of Directors of “Rosneft”. But until recently the company did not convene the Council to participate in this transaction, to the materials on its website.

Wednesday, 7 December, to be held meeting of the Board of Directors of “Rosneft”, at the time of writing of the text was unaware of the outcome. The agenda only two issues — the acquisition of a stake to 35% in the concession agreement in respect of the offshore block Shorouk in Egypt and “different”, according to the materials of “Rosneft”. A source close to the Board on Wednesday afternoon told RBC that the company still has not sent the materials for the second item (“miscellaneous”): they can only show at the meeting. Leont’ev does not comment on it.

With the participation of Yana Milyukova

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