PRESS: Sibur unable to hold IPO until deal with TAIF closed – CEO

MOSCOW, Jul 13 (PRIME) -- Russian petrochemical giant Sibur will be unable to hold an initial public offering (IPO) until the deal with TAIF is closed, business daily Vedomosti reported on Tuesday citing Sibur CEO Dmitry Konov.

“We will be for sure unable to hold an IPO until the deal with TAIF is closed. The shareholders of Sibur have always wanted the company to be public, but we have not held an IPO yet due to various reasons. And now I am sure that the shareholders of TAIF are also interested deep inside in the united company going public,” Konov said, as quoted by the daily.

The companies are ready to exclude TAIF’s oil processing assets from the integrated company so that the deal was approved by the Federal Antimonopoly Service, he also said, adding that Sibur is generally not interested in own oil processing.

Konov also said that Sibur does not agree with analysts’ appraisals of the united company at U.S. $20–23 billion.

“I am sure, and so are the rest of the shareholders, that the company will cost more in the future is case of an adequate market environment, after implementation of both companies’ development plans, and the synergy that we have,” he said, as quoted by the daily.

Sibur and TAIF are merging their petrochemical businesses on the basis of Sibur Holding. The TAIF shareholders will swap a controlling stake in the group’s petrochemical and energy companies for 15% in the new company, and the combined company will be able to purchase the remaining stake in TAIF subsequently.

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