Watchdog says Russia’s Rosneft ready for privatization, underpriced
MOSCOW, Feb 9 (PRIME) -- Russian oil major Rosneft is almost ready for privatization of a 19.5% stake which belongs to state oil and gas holding Rosneftegaz but conditions must be created for the shares to be sold at a fair price, the Federal State Property Management Agency said in a statement on Tuesday.
“In Rosneftegaz’s opinion, the fulfillment of the president’s order regarding the minimum price of the deal at a level not lower than the price of the primary placement is possible in the medium term only if conditions ensuring growth of the market price of Rosneft’s shares are created,” the agency said.
The agency said that the fair price of Rosneft’s shares is $8.12, because this was the price of a stake sale to BP, the most recent large deal with the shares of the company.
Authorities decided in 2014 to set the minimum price for the state stake in Rosneft at the level of the initial public offering in 2006 and not below the market price. The IPO took place at 203 rubles per share in Russia and at $7.55 per global depositary receipt in London.
Rosneft closed at 276.05 rubles per share at the Moscow Exchange on Monday. The GDRs closed at $3.50 in London.
(76.8614 rubles – U.S. $1)
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