Rosneft to buy out TNK-BP minority bloc for USD1.5 billion
On Monday, Russian oil producer Rosneft would be buying out TNK-BP Holding's shareholders in a USD1.5 billion deal. The deal was reportedly above market price for 5% of Rosneft, but would be disappointing some investors.
Rosneft would be paying RUB67 or USD2 per ordinary share and RUB55 per preferred share to minority shareholders.
Sources told Reuters that the minority interest of TNK-BP was valued at USD2.8 billion. The valuation was based on what the oil producer had paid to get a majority stake in TNK-BP. In a note, analysts of multinational investment banking and asset management firm Sberbank CIB said, "Minority shareholders who accept the offer will receive just half of the price for their shares that the oligarchs and the big foreign major got for theirs. The only shareholders who will benefit from this are speculators who bought the shares on the cheap during the long period of uncertainty - precisely the people whom Sechin said he wanted to punish."