2012-11-30 06:00:31 - Rosneft to Acquire 50% Stake in TNK-BP from BP for US$26.8 Billion - Acquisition to Help Rosneft to Expand its Production by 69% - Deal Analysis - a new market research report on companiesandmarkets.com
Rosneft to Acquire 50% Stake in TNK-BP from BP for US$26.8 Billion - Acquisition to Help Rosneft to Expand its Production by 69% - Deal Analysis - OJSC Rosneft Oil Company (Rosneft) agreed to acquire a 50% stake in OJSC TNK-BP Holding (TNK-BP), from BP p.l.c. (BP) for a purchase consideration of US$26.8 billion. Of the total consideration, Rosneft will pay US$17.1 billion in cash, and the remaining US$9.7 billion will be through the issuance of 1,360,449,797 shares to BP, at a price of US$7.13 per share as on October 18, 2012, representing a 12.84% stake.
Rosneft intends to fund the cash portion of the acquisition from a combination of existing cash resources and new borrowings.
Under the terms of the transaction,
BP agreed not to dispose of any Rosneft shares acquired in the transaction for at least 360 days following the completion of the transaction. BP and Rosneft have an exclusivity period of 90 days to negotiate fully-termed sale and purchase agreements.
Morgan Stanley & Co. Limited, UBS Investment Bank, Goldman Sachs International, Lambert Energy Advisory Limited, Renaissance Capital and Credit Suisse Securities (Europe) Limited are acting as financial advisors, while Linklaters LLP is acting as legal advisor to BP in the transaction. Merrill Lynch & Co., Inc. and Citigroup Global Markets Limited are acting as financial advisors, while Cleary Gottlieb Steen & Hamilton LLP is acting as legal advisor to Rosneft in the transaction.
The transaction is expected to be completed during the first half of 2013, subject to signing definitive agreements, and other certain customary closing conditions, including governmental, regulatory and anti-trust approvals.
Furthermore, on October 22, 2012 Rosneft agreed to acquire a 50% stake in TNK-BP from AAR consortium, which consists of Alfa Group, Access Industries and Renova (AAR), for a sum of US$28 billion. The Rosneft AAR deal and Rosneft BP deal will result in Rosneft becoming the 100% stakeholder of TNK-BP.
- Rationale behind Rosneft acquiring BP´s stake in TNK-BP.
- Rationale behind BP divesting stake in TNK-BP.
- Geography Covered- Russia
Reasons to buy
- Develop a sound understanding about Rosneft´s acquisition of BP´s stake in TNK-BP.
- To know about how the transaction will help Rosneft to increase its production assets and reserves and gain synergy from it.
- To have an idea about events whcih has led BP to take the divestment decision of its stake in TNK-BP.
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