Today the Russian Fund for the Federal Property begins accepting bids for the auction of 7.59% of LUKoil shares

Sunday, February 28, 2021

Sign-In | Sign-Up | Contact Us | Bookmark

According to Kommersant, such a large privatization deal will not involve any Russians for the first time in Russia's history. Analysts are convinced that the outcome of the auction is clear: the American ConocoPhillips will purchase the company's shares by increasing its share by buying stocks on the market and from LUKoil managers. Yesterday, the newspaper polled Russian oil majors who could have bid for LUKoil's package. Each of them said they did not intend to take part in the auction, which Russian portfolio investors, including the largest investment companies, are not interested in. Even current LUKoil shareholders have expressed no interest in extending their package. According to the latest reports from ConocoPhillips, it intends to consolidate up to 25% of LUKoil shares and then purchase the rest of the shares on the open market. According to analysts, Russian companies are not participating in the auction is not only because of the Kremlin's support for ConocoPhillips' plans. Consolidation of the large (25%) package of LUKoil shares will cost about $6.4 billion, and Russian investors have no extra money to do this. The purchase of 7.59% of the shares is pointless, as it does not allow one to participate in the management of the company (the share will only be enough for a seat in the board). Moreover, considering the current dividend policy of the company, the purchase of the state-owned package will only pay back in ten years at least.

Bookmark Today the Russian Fund for the Federal Property begins accepting bids for the auction of 7.59% of LUKoil shares