1 Oct 2009 15:35

Sistema may sell controlling stakes in Bashkortostan energy cos to Bashneft

MOSCOW. Oct 1 (Interfax) - AFK Sistema is poised to sell its controlling stakes in Bashkortostan energy companies to Bashneft , Sistema said in a statement.

The stakes are in Ufaneftechim , Novoil , Ufaorgsintez , Ufimsky NPZ and Bashkirnefteproduct.

The board of directors approved the sales at a meeting at the end of September. Shareholders will vote on the measure on a correspondence basis, with a November 16 deadline for submitting ballots. Shareholders of record on October 5 may participate.

"In the long term, we plan to create a vertically integrated oil company around Bashneft, which will play the role of management structure. The decision on sale of a controlling stake in the five companies is one of the first steps toward optimizing business processes in the Bashkortostan energy sector," Sistema board chairman Vladimir Yevtushenkov is quoted in the statement as saying.

Bashneft has reported that its board approved placement of three series of seven-year bonds with possible earlier redemption at the request of the holders.

The bonds have par value of 1,000 rubles. The first and second series each number 15 million bonds and the third totals 20 million.

"The three ruble bond series are being issued with the goal of acquiring assets in order to optimize the management structure of the Ufa group of enterprises pursuant to the goal announced earlier of forming a vertically integrated oil company, Bashneft board chairman Alexander Goncharuk is quoted in the statement as saying.