OAO Rosneft (ROSN), Russia’s largest oil producer, will offer to buy back shares at 212 rubles apiece from minority holders opposing planned changes in an oil supply deal with China.
Rosneft and OAO Transneft, Russia’s oil pipeline operator, plan to lower crude export prices to China National Petroleum Corp. (CNPZ) by $1.50 a barrel, Russian newspaper Kommersant reported today, citing unidentified people with knowledge of the negotiations. China agreed to pay $134 million in overdue debt as part of the agreement, Kommersant said.
Rosneft shares closed at 224.60 rubles in Moscow today.
The offer will be extended to dissenting or abstaining investors after the board approved altering a “major transaction” and the “conclusion and altering of related party transactions,” which will be put to vote at an April 10 shareholder meeting, according to a regulatory filing today from the state-controlled oil producer.
Rosneft spokesman Rustam Kazharov confirmed that the buyback is related to proposed changes in Rosneft and Transneft’s deal to supply China with 15 million metric tons of oil a year. He wouldn’t immediately comment on price details.
Igor Sechin, Russian Deputy Prime Minister and former Rosneft board chairman, said last June that Rosneft would consider increasing supplies to China.
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