The Head Of “Rosneft” Igor Sechin
The fundamental value of Rosneft is $120-130 billion, said the General Director of the company Igor Sechin in an interview to “Russia 24”. He noted that in the valuation of the company, there is a hallway. “From $56 billion in the current quotations, to $120 billion, even $130 billion on the basis of the fundamental value of the company,” Sechin said (quoted by “Interfax”).
At the end of trading on the Moscow exchange on Tuesday, the capitalization of “Rosneft” has made $56,3 billion.
Speaking about the planned privatization of 19.5% of the company, Sechin said, the potential strategic investor shall provide the company with synergy. “It must be conducted on a strategic investor, such investor shall have appropriate qualifications, have risks of claims and to ensure synergy in working with the company. I think it would be correct,” — said Sechin.
However, he expressed the opinion that “public stock sale is extremely inefficient and can lead to failure”. The reason for this can serve as volatility, political instability in the markets for raising capital, and a shortage of funds.
Before Bloomberg, citing two people familiar with the situation sources told that the Russian authorities would prefer to joint the sale of 19.5% Rosneft with India and China. According to the publication, in a fraction of the expected 700 billion rubles ($11 billion).
Earlier, Finance Minister Anton Siluanov in an interview to CNBC stated that the government plans to obtain in the sale of 650 billion rubles.
In January, President Vladimir Putin announced the intention to sell in 2016, the state-owned shares of “Rosneft”, “Bashneft”, VTB, ALROSA and Sovkomflot. The state owns 69.5% of Rosneft through state holding company Rosneftegaz, the Board of Directors which is headed by the President of “Rosneft” Igor Sechin.