UPDATE 2: State stake in Russia Bashneft valued at 297–315 bln rbl

(Adds details in paragraph 4)

MOSCOW, Aug 5 (PRIME) -- The value of Russia’s government 50% stake in oil company Bashneft, which will soon be sold, was valued at 297–315 billion rubles, First Deputy Prime Minister Igor Shuvalov told reporters on Friday.

“According to results of a preliminary valuation…the 50.0755% was valuation in a range between approximately 297 billion rubles and 315 billion rubles. The total amount of the common shares owned by Russia can be estimated at about 306 billion rubles at the start of sale,” Shuvalov said.

The final price estimation will be made on August 8, he said.

Director of the Federal State Property Management Agency Dmitry Pristanskov said that a report by a sales organizer is being considered. “The federal property agency will issue a final conclusion of the pricing, and later there will be a meeting in the Economic Development Ministry with the aim of preparing a report to send it for consideration to the government of the Russian Federation.”

Economic Development Minister Alexei Ulyukayev said that oil major Rosneft bid for the Bashneft sale but the government will unlikely give it admission.

The privatization’s organizer is now forming a price offer for potential investors, Ulyukayev said. “After they say that they agree with this offer a short list will be made… I think that it (Rosneft) will barely be (on the short list) because as we said, this company is a state firm in fact, and its participation in the privatization is unviable, I suppose,” he said.

On Thursday, Ulyukayev said there are nine contenders for Bashneft, including Rosneft, and the government may privatize Bashneft in September–October.

The Economic Development Ministry expects that Bashneft will be sold with a 20–30% premium to the market price, Ulyukayev said. The appraiser gave Bashneft a price range estimate, he said, adding that some media reports that Bashneft will cost investors 306 billion rubles are incorrect.

Ulyukayev also believes it is reasonable to impose a moratorium on resale of Bashneft’s shares.

President Vladimir Putin earlier authorized the sale of the entire government stake in Bashneft to a private investor. The Federal State Property Management Agency owns 50.08% in the company, while the government of the republic of Bashkortostan has a 25% stake.

(66.3941 rubles – U.S. $1)

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