Another 10% of Sibur might be sold to Chinese investors soon - Mikhelson
MOSCOW. Sept 5 (Interfax) - The sale of 10% of shares in Sibur Holding to Chinese investors, in addition to the 10% already bought by Chinese state company Sinopec, might take place soon, the Russian petrochemical group's principle shareholder, Leonid Mikhelson told reporters.
Asked whether Sinopec or other Chinese companies would increase their stake in Sibur, Mikhelson said: "I think soon, yes." Earlier there was talk that China's China Development Bank (CDB) and Silk Road Fund (SRF) might participate in such a deal.
He did not specify which of Sibur's shareholders might participate in the deal. He also did not say whether there would be a new share issue, remarking only that "we will decide closer to the deal."
The Russian government commission on foreign investment has approved the purchase of up to 20% of Sibur shares "in accordance with a request from the Chinese side." Sinopec bought 10% of Sibur shares last December. A protocol issued by an intergovernmental commission in May mentioned that Chinese financial institutions - SRF and CDB - might buy the additional 10%.
Sinopec, one of the world's biggest petrochemical companies, is also interested in participating in Sibur's planned Amur Gas Chemical Complex, which is aimed at eastern markets. Sibur head Dmitry Konov said earlier that negotiations were being held with both European and Asian partners. Sinopec, which holds a license to a pyrolysis plant alongside CB&I, KBR, France's Technip and Germany's Linde, is offering its technology and engineering services.
Sibur chief operating officer Mikhail Karisalov told Interfax earlier that the company would decide on the configuration of the complex after selecting its partner.
"First we need to decide on the partner for Amur GCC, and then together with them finally decide on the configuration of the complex. In other words, the question of the complex's configuration is dictated by our dialog with the selected partner," Karisalov said.
Mikhelson owns about 43% of Sibur shares, board director Kirill Shamalov owns 20.9%, businessman Gennady Timchenko owns 14.2%, Sinopec holds 10%, Konov and former Sibur head Alexander Dyukov each hold about 4%, and Karisalov holds 1.65%. Former and current senior management owns a total of about 11% of Sibur.
