20 Sep 2023 13:08

Gazprom Neft not planning offer for nonresident shareholders - Dyukov

TYUMEN. Sept 20 (Interfax) - Gazprom Neft does not intend to make an offer to nonresident shareholders along the lines of Lukoil , which is in the process of approving such a deal with Russian authorities.

"We do not plan [to buy back shares from nonresidents]. We have a very small free float volume. And even in this volume foreign investors have a minimal share," Gazprom Neft chief Alexander Dyukov told reporters on the sidelines of the Industrial and Energy Forum in Tyumen.

The main owner of Gazprom Neft is Gazprom . As of 2021, the free float was 4.3%, including about 1.2% in American Depositary Receipts. The company discontinued its ADR program last year.

Lukoil in July requested permission to buy back shares from non-residents (according to Presidential Decree No. 520, such a transaction requires a separate decision of the head of state), as a source familiar with the situation told Interfax. Potential buyers are Lukoil Group companies; the offer will not exceed 25% of the oil company's shares (it is envisaged that it will also apply to depositary receipts); the discount to the market value should be at least 50%. Lukoil promised to allocate for the buyout only those funds accumulated on the group's foreign accounts due to the implementation of projects abroad. The company assured that this money is sufficient and it will not tap the domestic currency market to finance the offer. Lukoil's request is under consideration and federal authorities are determining their position, Russian Deputy Prime Minister Alexander Novak told reporters later.