Sibir Energy PLC (SBE.LN) Tuesday said Russia's OAO Gazprom Neft (SIBN.RS) had offered to buy out its minority shareholders in a deal that values the London-listed oil producer at GBP1.93 billion ($3 billion).
Sibir, a mid-cap oil company with fields in Western Siberia and a refinery in Moscow, said Gazprom Neft had made a 500-pence-a-share cash offer for the entire company.
But the offer excludes stakes held by core owners Bennfield Ltd., Central Fuel Co., Bank of Moscow and Gazprom Neft itself, which together control more than 93% of shares outstanding.
"It's a way for minority shareholders who missed Gazprom Neft's previous offers to exit at an attractive price," a person close to the company said.
Gazprom Neft, the oil arm of state gas monopoly OAO Gazprom (GAZP.RS), had said as recently as Friday that it would not seek more than 30% of Sibir.
But by late last week it had already amassed a 27.5% stake, having initially snatched almost 17% in April by outbidding bigger rival TNK-BP Ltd., half-owned by BP PLC (BP.LN).
Analysts, who have widely predicted swoops for smaller oil producers after a slump in their share prices, say a full takeover bid by Gazprom Neft is likely in order to maximize the value it can extract from Sibir's assets.
Gazprom Neft declined to comment.
Sibir's shares have been suspended from trading on London's Alternative Investment Market since February, when the company initiated a probe into dealings with major shareholder Chalva Tchigirinski.
They last traded at 174.75 pence each.
Tycoon Tchigirinski, who through Bennfield had owned a 47% stake together with partner Igor Kesayev, had sought to sell hotel and other real-estate assets to Sibir amid the downturn in his personal business empire.
Despite canceling those deals, Sibir said Tchigirinski owes it $400 million, in lieu of which the businessman has transferred a 2.7% stake - separate from his Bennfield block - back to the company.
Last month, Sibir said it had filed lawsuits against Tchigirinski and Chief Executive Henry Cameron, accusing them of share-price manipulation and unauthorized payments.
Sibir operates a large Siberian oil field with Royal Dutch Shell PLC (RDSB.LN) and holds a 50% stake in the Moscow Refinery, plus retail outlets in Moscow.
The City of Moscow has an 18% stake, held by the Central Fuel Co.