OAO Rosneft (MCX:ROSN; LON:ROSN) does not intend to buy out shares from oil producer TNK-BP Holding OAO’s (RTB:TNBP) minority stakeholders, the Russian oil and gas major’s CEO Igor Sechin told Rossia-24 TV channel on Friday, reiterating an earlier decision.
The statement was made after on Thursday Rosneft announced the completion of its $55bn (€42.4bn) purchase of TNK-BP. After Sechin’s comments, TNK-BP shares fell by more than 14% to a record low of RUB48.11 ($1.56/€1.20) earlier today.
Rosneft agreed to take over TNK-BP in December last year through transactions with the AAR Consortium and UK’s BP Plc (LON:BP), each holding a 50% stake in the target. It bought BP’s stake for $16.65 in cash and Rosneft shares accounting for a stake of 12.84%. Rosneft paid $27.73bn in cash for AAR’s half in TNK-BP, covering the price with debt.
Separately, BP acquired 5.66% in Rosneft for $4.8bn from its parent Rosneftegaz OJSC, thus raising its 1.25% stake in Rosneft to 19.75%.
According to Rosneft, the combination created the world’s largest listed crude producer.
Russian papers Kommersant and Vedomosti reported earlier today that Rosneft’s vice president for finance and economics Dmitry Avdeyev had resigned by mutual consent and would be succeeded by Svyatoslav Slavinsky, a senior banking services executive with Citigroup Inc (NYSE:C) in Russia.