Report: Russia's LetterOne plans to sell German oil, gas division

MOSCOW, Jul 22 (PRIME) -- Investment company LetterOne of Russian businessman Mikhail Fridman plans to sell German oil and gas company DEA Deutsche Erdoel, Bloomberg reported late Thursday, citing sources with knowledge of the situation.

DEA Deutsche Erdoel earlier hired Citigroup Inc. to find potential investors, the sources said. The deal may take place in late 2016, they said.

Infrastructure and pension funds might be particularly interested in the deal because of a stable profitability of oil and gas storage and transportation business.

In 2015, DEA Deutsche Erdoel received 30 million euro earnings before interest, taxes, depreciation and amortization (EBITDA) from oil and gas storage business, the sources said. The company has long-term contracts with public utility providers until 2027, one of the sources said.

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