Experts at Deutsche Bank are predicting the introduction of competition or its visibility” in the process of privatization of state stake in Bashneft (of 50.08%) in the case of the participation of such applicant, as “Surgutneftegaz”. This is stated in the review of the Bank released on Tuesday (RBC has a copy).
“Cash cushion “Surgutneftegaz” in the $35 billion will allow the company to maintain a very strong balance sheet even after paying out $4.5 billion for half of “Bashneft” — write the analysts of the Bank. In their opinion, the company will be able to significantly improve its vertical integration and to achieve the greatest synergy among all Russian oil companies by oil refineries of Bashneft in Bashkiria. On Tuesday of 50.08% of “Bashneft” on the Moscow exchange was worth 243 billion rubles ($3.6 billion).
Sale of majority stake in “Surgutneftegaz” promises to the minority shareholders of “Bashneft” (25% owned by Bashkortostan, the 4.67% — “daughter” of “Bashneft”, the rest is traded on the stock exchange) no benefit, but they most likely will be asked to sell their shares during the offer, analysts said Deutsche Bank. And the victory of “Surgutneftegaz” in the privatization of a competitor will lead to growth of its quotations (now the company’s capitalization is about $22.5 billion).
On Tuesday the representative of “Surgutneftegaz” has failed to promptly respond to a request RBC. But the company’s CEO Vladimir Bogdanov in April, told RNS that are still undecided with the possibility of participation in privatization of “Bashneft”. “Still no one sells,” he said. Silence “Surgutneftegaz” about the interest in privatization of “Bashneft” does not mean that it will not participate, analysts say Deutsche Bank. “The government would be happy to keep the “Bashneft” on the hook at the expense of loyalty to the state “Surgutneftegaz” — sure they are.
Showing public interest in Bashneft, Surgutneftegaz demonstrates pragmatism, believe in Deutsche Bank. The company can wait for the official announcement of the terms of privatization. May 17, President Vladimir Putin ruled out the “Bashneft” from among the strategic enterprises, opening the way to privatization of the company. On the same day the Minister of economic development Alexei Ulyukayev said that it is a “technical possibility” to sell the company before the end of the first half. “Somewhere at the end of this — early next month will get the position of the investment consultant, and should continue to be held very fast action,” he said.
Funds “Surgutneftegaz” in the first quarter of 2016, declined by 8.9%, to 2.2 trillion rubles, follows from the company report, the company published in April of this year. On December 31, 2015 on the accounts of the company was 2,419 trillion this amount includes short-term and long-term financial investments (deposits) and cash and equivalents.
If “Surgutneftegaz” will decide to participate in the battle for Bashneft, he will face four rivals. The head of LUKOIL Vagit Alekperov said in April that the company is interested in buying Federal share of the company but are not willing to pay for the asset any price. Back in March, ex-President of “Rosneft”, the owner of an Independent oil and gas company (NOC) Eduard Khudainatov asked Putin a letter in which he announced the willingness of NOCS to participate in the privatization of “Bashneft”. He later confirmed to TASS that is interested in buying the asset. The media also reported on several contenders for the stake in Bashneft — businessmen Yuri and Alexei Hatinh, which owns large assets in real estate market, as well as a small oil and gas companies, including NC”, another”, and about the little-known company “Tatneftegaz” ready to rent 75,08% of “Bashneft” for ten years for $6 billion.