PRESS: Russian govt wants 100% premium for Bashneft stake

MOSCOW, May 18 (PRIME) -- The Russian government is aiming to get a 100% premium to the price of a 50.08% stake in oil company Bashneft during the privatization, business daily Vedomosti reported on Wednesday, citing an executive of a company interested in the asset.

A government official confirmed the information, saying that authorities want a buyer to pay the market price and a 100% premium “because he will buy a business rather than a market share as a market investor, this is why the market price has no meaning.”

Bashneft’s capitalization stood at 489 billion rubles on Tuesday, Vedomosti reported saying that this is a rough price estimate for the state stake.

Russian President Vladimir Putin earlier authorized sale of the entire stake in Bashneft to a private investor. Economic Development Minister Alexei Ulyukayev said he believes privatization of Bashneft may take place until July.

Russian oil major Lukoil and Alliance Oil, a unit of Russia’s Independent Oil and Gas Company of businessman Eduard Khudainatov, expressed their interest in the asset. Tatneftegaz asked for a temporary possession of a 75.08% stake in Bashneft for 10 years, and according to an earlier report by Forbes, businessmen Yury and Alexei Khotin, would like to participate in the auction as well.

(64.5138 rubles – U.S. $1)

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