Rosneftegaz announced the closing of the sale of 19.5% of Rosneft

Rosneftegaz announced the closing of the sale of 19.5% of Rosneft


Photo: Andrey Rudakov/Bloomberg

Rosneftegaz announced the completion of the privatization of 19.5% of “Rosneft”. In the process of closing the transaction involved more than five jurisdictions, the company

The company “Rosneftegaz” reported the completion of the sale of shares of “Rosneft”, the Qatari investment Fund Qatar Investment Authority (QIA) and the Swiss trader Glencore.

In the message, published on the website, said that the company has completed all corporate and technical procedures, and conducted all calculations under this transaction. “Rosneftegaz” notes that the closing of the transaction demanded the signing of more than 50 documents and agreements and involved more than five jurisdictions. The report did not specify what kind of jurisdiction was involved in this process.

Before Glencore announced the completion of the privatization package of Rosneft. The company does not disclose how it financed this transaction. An agreement to sell 19.5% of Rosneft shares belonging to “Rosneftegaz” was concluded in early December 2016. The buyers were Glencore and QIA. The amount of the transaction amounted to €10.2 billion (692 billion at the exchange rate on December 6), however, by the additional dividends from Rosneftegaz to the Federal budget received 710,8 billion.

Glencore reported that it will pay from its funds of €300 million, €2.5 billion will make QIA. The rest of the financing will come from a group of banks led by Italy’s Intesa Sanpaolo. The representative of the financial institution confirmed the plans to provide a loan in the amount of €5.2 billion.

“Rosneftegaz” in the message indicates that after the announcement of the transaction value of the shares of the company increased by 20%. The value of the controlling stake, the rest of the state (50% plus three shares) Rosneft, increased by 350 billion rubles.