Russian oil major OAO Gazprom Neft (SIBN.RS) is increasing its stake in London-listed oil company Sibir Energy PLC (SBE.LN), the companies said Friday, amid conflicting reports on the size of the stake Gazprom is eyeing.
Friday morning, Russian bank Renaissance Capital (RNCG) said it is starting to buy shares of troubled Sibir on behalf of Gazprom Neft, Russia's fifth-biggest crude producer, which is majority owned by state-controlled gas firm OAO Gazprom (GAZP.RS). The bank didn't provide any price guidance, saying: "All purchase needn't be at the same price."
The price in every case should depend on "the level of interest shown by Sibir shareholders in this offer for sale, the size of the block of shares offered by a shareholder and the discretion of Renaissance Capital," the bank said.
However, Sibir's board recommended a guidance of 500 pence to its shareholders, the price Gazprom Neft paid for a 16.95% stake in the company in April. In contrast, Sibir shares traded at 174.75 pence in February, before being suspended on London's Alternative Investment Market pending an investigation into erroneous disclosures relating to controversial real estate dealings with core owner Chalva Tchigirinski.
Tchigirinski himself has transferred a stake of about 2.73% to the company to repay his debt to Sibir, the company said Friday. Sibir said it is ready to sell the stake to Gazprom Neft at 500 pence a share. In addition, Tchigirinski has also transferred his villa in France and a house in London to Sibir, the company said, adding that it is negotiating over obtaining further security from the businessman.
Meanwhile, Gazprom Neft said it is buying shares only through Renaissance's announcement, and has no intention of buying 30% or more of Sibir's shares.
Earlier Friday, Russian agency Interfax reported, citing unnamed sources, that Gazprom Neft may consolidate between 45% and 75% in Sibir, as it has already agreed with businessman Igor Kesaev to consolidate his 23.5% stake in the company.
Later, the agency reported that businessman Ruslan Baisarov, who controls a 23.3% stake in Sibir, is holding talks with Gazprom Neft on the sale of his interest in the company.
However, analysts said Gazprom Neft will eventually gain control of Sibir.
Gazprom Neft is "looking closely at the possibilities for acquiring companies that aren't in the best financial health" in Russia, the company's general director for exploration and production said in an interview with the company's in-house magazine Thursday.
"It is a good use of cash on the part of Gazprom Neft to buy an oil asset during the distressed year," analyst Lev Snykov from VTB Bank said.
He added: "Consolidating Sibir will allow Gazprom Neft to maximize the value from Sibir's potential production growth and robust downstream exposure."