Bloomberg News

Rosneft Closes Share Buyback From Dissenters on China Deal

July 04, 2012

OAO Rosneft, Russia’s state-run oil producer, bought back about 3 percent of its shares from investors who opposed changes to an oil supply deal with China.

Rosneft purchased 322 million shares, according to a regulatory filing from the Moscow-based company today. That is the amount tendered by investors, according to a statement on Rosneft’s website on May 31.

Shareholders agreed in April to give China a discount of $1.50 a barrel under a deal signed in 2009 to supply 300,000 barrels of oil a day to Russia’s Asian neighbor for 20 years. China agreed to grant Rosneft and OAO Transneft, the state-run pipeline operator, $25 billion in loans, to help fund field developments and construction of export links.

The 3 percent stake is valued at 68.3 billion rubles ($2.1 billion), based on a price of 212 rubles a share that Rosneft’s board set May 30. Rosneft has no plans to cancel the shares, the company said at the time. Rosneft shares fell 0.6 percent to 210.25 rubles by 4:04 p.m. in Moscow as oil prices declined.

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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