AAR to sell or float Russia’s TNK-BP stake if Rosneft buys share

MOSCOW, Oct 9 (PRIME) -- The Russian owner of oil company TNK-BP, Alfa-Access-Renova (AAR), has informed its partner in the venture, BP, of plans to sell all or part of its stake to a third party or float it, if BP sells its shares to state-run major Rosneft, a source close to AAR said on Tuesday.

AAR and BP have long been locked in a boardroom conflict over strategy and BP’s failure to team up with Rosneft due to a legal challenge from AAR. BP said it wants to sell its investment, and Rosneft said it was ready to acquire the 50% stake.

AAR, which represents billionaires Mikhail Fridman, Leonard Blavatnik, Viktor Vekselberg, and German Khan, also made an all-cash bid for BP’s entire stake, which analysts estimate at U.S. $25 billion.

“Under existing procedures, AAR’s proposal to buy BP’s share will be sent to the British company within the next two weeks, the source told PRIME.”

AAR will not sell or float its stake, if BP rejects plans to sell its share or sells it to AAR.

“Nevertheless, we acknowledge the possibility that BP’s share will be acquired by Rosneft and if it happens AAR can secure the liquidity of its shares with the help of a public placement,” the source said.

He said that Rosneft does not have the experience or technologies owned by BP and will not help promote TNK-BP, Russia’s third largest oil firm, on the international market which is AAR’s goal.

“If BP’s share is acquired by Rosneft, the AAR consortium will be interested in new ways of securing the profitability of its shares,” the source said.

BP and Rosneft offered AAR $32 billion for its stake last year, which the billionaires turned down. In July, AAR proposed buying half of BP’s stake based on market price, with a possible discount that accounted for potential damages. TNK-BP’s listed unit, which does not include its overseas assets, has a market value of about $40 billion.

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