Ulyukayev: to privatize Rosneft in 2016 is possible, because ruble price of shares is higher than at IPO
MOSCOW. Dec 7 (Interfax) - Russian Economic Development Minister Alexei Ulyukayev thinks that the privatization of Rosneft in 2016 is possible, and this will not breach the government order on the sale of the sales of a company's shares at a price that is no lower than the price of their placement, because in ruble equivalent, the cost of the shares in now higher.
"Maybe Rosneft will be privatized, it is in the plan of privatization for 2016, it is planned to sell 19.5%. At the market price, there can be no other price," he said about his position on the issue of Rosneft's privatization during an interview with the Vedomosti news paper that was published on Monday.
According to the government order, the shares should be sold at a price no lower than the initial public offering in 2006. Then one share and depository receipt was $7.55. Rosneft President Igor Sechin recently said that the price for privatization should be no lower than $8.12 per share, which "other shareholders paid during referential deals.
"Now the ruble price of a Rosneft shares is higher than it was in 2006. Shares are not being sold for dollars, ADR are being sold for dollars, they now really cost less. We are in the Russian jurisdiction and we are speaking about the ruble price of Rosneft's shares. Therefore, from my point of view, this condition [of prices no lower than the placement in 2006] is being met," Ulyukayev said about the possibility of the sale of Rosneft.
Russian Prime Minister Dmitry Medvedev in November of last year signed an order that is necessary for the privatization of 19.5% of Rosneft's shares that belonging to Rosneftegaz.
The order sanctions the dispossession of 2,066,727,473 shares of the oil company at price no lower than the IPO in 2006. The price per share during the IPO was $7.55.
The reduction of the stake of Rosneftegaz in Rosneft's capital from 69.5% to 50% plus one share was envisaged by the confirmation already in 2013 of the privatization program. The publication of the order allows such a sale to take place. Its timeframe has not yet been set.