Lukoil CEO Alekperov Plans Dividend Buying Spree to Boost Stake

OAO Lukoil’s billionaire Chief Executive Officer Vagit Alekperov plans to use his dividend payout from 2013 to boost control over Russia’s second-largest oil producer.

Alekperov, the company’s largest shareholder with more than 22 percent, said in an interview in St. Petersburg that he’ll spend the entire dividend on Lukoil shares. His 2013 payout may amount to about $600 million, which would translate into a stake of about 1.2 percent at current prices, according to Ildar Davletshin, an analyst at Renaissance Capital Ltd.

“This is definitely a positive statement confirming belief of management in their company,” Davletshin said by e-mail. “The only issue is that he has been buying shares for a number of years now but this has not helped the share price.”

Lukoil managers led by Alekperov and Vice President Leonid Fedun have pledged to keep adding to holdings they bought last year. Alekperov acquired more than $681 million of shares in 2013 and at least $77 million this year, according to Bloomberg calculations from Lukoil filings.

Lukoil fell 0.4 percent in Moscow today to 1,957 rubles. The company paid a 50-ruble interim dividend last year and plans to pay a final 60-ruble dividend for 2013.

OAO Rosneft, which is controlled by the Russian state, is the world’s largest publicly traded oil producer by output.

To contact the reporters on this story: Stephen Bierman in St. Petersburg at sbierman1@bloomberg.net; Jake Rudnitsky in London at jrudnitsky@bloomberg.net

To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net Scott Rose, Rachel Graham

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