OAO Rosneft (ROSN.RS) will offer a buyout to the minority shareholders of OAO TNK-BP Holding (TNBP.RS), in which it acquired a majority stake this year from BP PLC (BP) and a consortium of tycoons, Rosneft Chief Executive Igor Sechin said Friday.
Mr. Sechin said at the International Sochi Investment Forum that the price
would be based on the average that TNK-BP Holding's shares have traded at over
the past 18 months, which is likely to mean a premium of 20%-30% above current
prices.
State-controlled oil giant Rosneft acquired a 95% stake in TNK-BP, Russia's
third-largest oil company, on March 21 in deals worth $60 billion, becoming the
world's largest listed crude-oil producer. The minority shareholders who hold
the rest, including international investment funds, had hoped for a large
dividend or a buyout on similar terms. Rosneft had for months maintained there
would be no buyout.
Mr. Sechin announced the buyout plan after Russian Prime Minister Dmitry
Medvedev said Friday state companies should lead the way in creating attractive
conditions for investors. Mr. Medvedev called on Rosneft to buy out the TNK-BP
minorities. "If you are prepared to do it, I'll sign the relevant order
today," he said.
Mr. Sechin responded that Rosneft would "fulfil the task" that Mr.
Medvedev set and that the board would "consider and take the necessary
decision in the near future."
TNK-BP
Holding shares jumped 12.8% on the announcement.