Lukoil share packet bought from Conoco transferred between subsidiaries
MOSCOW. July 26 (Interfax) - A 7.6% treasury share interest in Russian oil major Lukoil purchased back from Conoco has been moved from the balance sheet of Lukoil Finance Ltd. to Lukoil Investments Cyprus Ltd., a Lukoil statement says.
Lukoil Investments Cyprus Ltd. now holds 8.24% of Lukoil shares.
The deal was transacted on June 30.
The statement does not explain the reason for the intra-group transfer.
ConocoPhillips had owned 20% of Lukoil shares but decided to divest the holding in early 2010. Lukoil agreed to acquire 19.21% of its shares in July, including an option to acquire 11.61% of equity in the form of depositary receipts valid until September 26, 2010.
LUKOIL Finance Limited purchased 7.6% of Lukoil shares on August 16 at $53.25 each or a total of $3.44 billion.
Along with that stake, the company holds another 8.1% of shares as treasury stock, the head of strategic development and investment analysis, Andrei Gaidamak, said last November.
LUKOIL Finance Limited exercised an option to purchase 42.5 million ADR (each backed by one ordinary share) from Springtime Holding Limited, a company affiliated with ConocoPhillips, and immediately sold them to UniCredit Bank for $56 each.
Lukoil has an option to purchase 25 million ADR from UniCredit Bank AG valid until September 29, 2011 at the market price but no more than $56 per ADR. The option is invalid if the market price drops below $50. If Lukoil decides not to exercise the option or the market price drops to $50 or lower, the ADR may be purchased by Redruth Investments Limited, which is controlled by Lukoil President Vagit Alekperov. Redruth Investments had purchased securities from UniCredit Bank issued in connection with the 25 million Lukoil ADR, but it sold them in March.
ConocoPhillips completed the sale of the 20% Lukoil stake in the first quarter of 2010.
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