ROSNEFT SUCCESSFUL DEAL
ROSNEFT - December 7, 2016, Moscow – Today an agreement for the sale of a 19.5% stake in Rosneft Oil Company owned by Rosneftegaz was signed. The stake was sold to the consortium of international investors, which comprises Qatar Investment Authority, one of the world largest sovereign funds and Glencore, a leading commodities producer and trader.
The integrated privatization deal with the sale of a 19.5% stake in Rosneft and the sale of a controlling government stake in Bashneft is the largest privatization deal in Russian history and the largest M&A deal in the global oil and gas industry in 2016. The economic effect for the Russian Government from the successful completion of the privatisation, including the value of synergies between Rosneft and Bashneft, will exceed RUB 1.1trln with budget revenues in Q4 2016 equal to RUB 1,040 bn.
As the direct result of the disposal of a 19.5% stake sale in Rosneft total budget revenue will amount to RUB 710.8bn.
The acquisition of the Rosneft stake will be financed with investors' own funds and will also involve debt financing. Investors' equity in the acquiring vehicle will amount to EUR2.8 bn. The bulk of debt financing will be provided by Banca Intesa Sanpaolo that will arrange financing to the acquiring vehicle on non-recourse basis with a pledge of the acquired shares. Additionally, Glencore's equity exposure on its investment in Rosneft shares will be reduced to EUR300 mn with full indemnity to Glencore's balance sheet on other potential liabilities to the acquisition vehicle as through structured risk reduction instruments.
On December 7, 2016 Rosneft Board of Directors has also approved a strategic cooperation agreement with Qatar Investment Authority and Glencore, providing for further cooperation in upstream projects, logistics and global trading.
With a view to further improve the Company's investment story the Board of Directors of Rosneft has also approved changes to the dividend policy increasing the minimum payout ratio to 35% of IFRS net income. The new policy also implies a shift to semi-annual dividend payments.
Given the deepening strategic relationship with Rosneft Glencore will sign a new crude oil supply agreement, which will enhance its trading activity with Rosneft.
As a result of the transaction, two important world-class shareholders would be added to Rosneft's shareholder structure that further strengthen its shareholder following consisting of more than 500 Russian and international institutional investors.
Commenting on the successful signing of the transaction Rosneft Oil Company CEO and Chairman of the Board of Directors of Rosneftegaz, Igor Sechin said: «While being extremely complex to execute, this privatization deal marks itself as the largest in the history of Russia. Bashneft sale, follow-on synergies and enhancing Rosneft's story with new shareholders allows the Russian state to obtain considerable revenue, which also includes the increase in the value of government's residual controlling stake. Despite what was a challenging market environment we successfully completed a comprehensive project identifying strategic investors that match the long-term interests of the Government of Russian Federation and those of the Russian oil and gas industry. We welcome Qatar Investment Authority and Glencore in joining Rosneft as its new shareholders, these are true strategic investors. I am certain that our collaborative work, including potential further investments in joint projects will create additional synergies for all of Rosneft shareholders».
His Excellency Sheikh Abdulla bin Mohammed bin Saud Al-Thani, Qatar Investment Authority CEO commented: «This investment reflects our strategy of investing in high quality assets with strategic partners globally to generate long-term financial returns. It also demonstrates our commitment to diversifying our portfolio across geographies, sectors and asset classes. We are looking forward to working with our partners to ensure the success of this outstanding business».
Commenting on the transaction, Glencore CEO Ivan Glasenberg said: «We are delighted that the strong relationships that already exist between Rosneft, QIA and Glencore have enabled us to successfully enter into this transaction. Glencore looks forward to working with both parties to take advantage of the significant opportunities which are expected to be presented across the Russian and global oil markets».
The settlement is expected by December 15, 2016 subject to fulfillment of relevant closing conditions.
|January, 19, 12:45:00|
|January, 19, 12:40:00|
|January, 19, 12:35:00|
|January, 19, 12:30:00|
|January, 19, 12:25:00|
|January, 19, 12:20:00|
PLATTS - For full-year 2017, South Korea's crude imports from its biggest supplier Saudi Arabia fell 1.7% to 319.02 million barrels, compared with 324.45 million barrels in the previous year, customs data showed. On the contrary, South Korea has imported 1.77 million mt, or around 13 million barrels, of crude from the US in 2017, about four times higher than in 2016. Shipments from Russia grew to 140,000 b/d last year from 112,000 b/d in 2016.
AOG - ADNOC’s 2030 strategy, he said, aims to capitalise on predicted global economic growth and demand for oil and petrochemical products, particularly in non-OECD countries. As its business responds to changing market dynamics, the company will continue to broaden its partnership base, strengthen its profitability, adapt to new realities and expand market access.
WNN - Under the terms of the assignment and purchase agreement it has signed with Nucleus and Brookfield, Toshiba will sell its rights to assert claims against Westinghouse related to the parent guarantees in the amount of $5.788 billion, and on account of other claims Toshiba holds against Westinghouse in the amount of $2.284 billion to Nucleus, for the sale price of $2.160 billion.
REUTERS - Brent crude futures LCOc1 were at $69.23 a barrel at 0808 GMT, up 8 cents from their last close, but down from a high of $69.37 earlier in the day. Brent on Monday rose to $70.37 a barrel, its highest since December 2014, the start of a three-year oil price slump. U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $63.84 a barrel, down from a high of $63.89 earlier, but up 11 cents from their last settlement. WTI hit $64.89 on Tuesday, also the highest since December 2014.