Control with veto power
The Ministry of economic development has prepared a draft presidential decree on amending the list of strategic enterprises that seek to reduce the size of the share of the Russian Federation in the authorized capital of “Bashneft” with 50,08% to 0% with the state retaining a “Golden share”, said the two officials of relevant departments and confirmed two Federal officials familiar with the contents of the document. According to the official Federal economic block of the government, the document is now being coordinated in the government, but “it’s not the final version of the privatization package in Bashneft. He also added that the negotiations with Bashkir authorities about the sale of their shares is still ongoing. “While the regional authorities against the sale of the national package company, we have not agreed,” he said.
Now Rosimushchestvo owns 50,08% of shares of “Bashneft”, Bashkortostan — 25% plus one share. In the list of strategic enterprises and strategic joint stock companies approved by presidential decree from August 2004 to 2015 were included in the 50% plus one share of the company. The forecast plan of privatization of Federal property for 2014-2016, approved by government in 2013, does not provide for the reduction of Russia’s share in the authorized capital of “Bashneft”.
While the region is strongly against the sale of its share, confirms a source in one of profile departments. The authorities of Bashkiria plan to privatize owned by the Republic of shares in Bashneft, said on 16 February, the Agency TASS the head of the region Rustem Khamitov. “Just ended the celebrations of the packet the property of the Republic, and, of course, we have no right to disappoint our fellow citizens the news in the sale of this package”, — stressed the head of the region. According to Khamitov, now to sell the asset in no time: “If three years ago the company was worth around $10 billion, today the market price, the market capitalization does not exceed $4.5 billion So in that situation, to sell cheap a good asset even for the state it is unprofitable”. “The position of the Republic has not changed, Bashkiria still against the sale of its stake”, — said on Friday the representative Khamitov.
The state plans on keeping “Golden shares” in “Bashneft”, giving the right of veto on strategic decisions, could deter potential buyers, according to the partner of consulting company RusEnergy Mikhail Krutikhin. Earlier among applicants for purchase of shares of “Bashneft” the media called LUKOIL and businessmen Yury and Alexey Hotiny. The parties also did not rule out that in the privatization of “Bashneft” can be involved in the mechanism of buy-back of interests in the management of the oil company (in case of sale of the control package below). Press Secretary of “Rosneft” Mikhail Leontiev denied plans of state company for the purchase of “Bashneft”.
Co-owner and President of LUKOIL Vagit Alekperov in mid-February confirmed that the company applies for the purchase of “Bashneft”: “When will be presented the terms of privatization of “Bashneft”, Yes, we will be interested in this asset,” — said Alekperov. “We are the largest supplier of oil to the company, I worked there. “Bashneft” is our partner on many projects, so today will be acceptable if price and conditions, to enable the company to become the operator (the owner of the controlling. — ) to manage the project, we are ready to participate in the purchase of an asset in competition”, — he said.
But when you save the state “Golden shares” takeover bid is meaningless, says a source close to one of the potential candidates for the “Bashneft”. Besides, according to him, the government is discussing the sale of a controlling stake in the company at a premium of up to 30% to market quotations, and it is “too expensive”. Possible prize in 20-30% heard and another interviewee in one of the large oil companies. When you save the state “Golden shares” Bashneft’s interest in the asset can save the buyer having a “very good contact” with senior management, he said. The sale of a controlling stake the government would get a premium to the market not less than 20% to the current prices, said one of the Federal officials. But the parameters of the transaction will be determined jointly with the consultant on the sale, which has not been scheduled yet, he said.
Current capitalization of “Bashneft” on the Moscow stock exchange is 429,5 bn on this Basis, from the sale of a controlling stake with a premium of 20-30%, the state can help out 258-280 billion rubles.
With the beginning of the year shares of “Bashneft” has risen by 27.5%, says portfolio Manager GL Asset Management Sergey Vakhrameev. In his opinion, the sale of a controlling stake adequate premium for the buyer could be 15-20%. The expert doubts that if you preserve the “Golden share” in privatization will take part foreign foundations or companies. The state has insisted on retaining for itself the right of veto in the sale of oilfield services company Eurasia Drilling Schlumberger American, and she refused the deal, reminds Vakhrameev. Krutikhin believes that foreign investors are not allowed to participate in the bidding for the sale of the controlling stake of “Bashneft”.
The Ministry and the Secretariat of the first Deputy Prime Minister Igor Shuvalov declined to comment. Press Secretary of LUKOIL Vitaly Matushkin did not comment on discussing the conditions of privatization of “Bashneft”, with representatives Hotiny could not be reached.