OAO TNK-BP Holding dropped to the lowest level in two months on concern minority shareholders in the traded unit of BP Plc’s Russian venture won’t benefit from OAO Rosneft’s deal to acquire the company.
TNK-BP fell 1.6 percent to 78.50 rubles by the close in Moscow, the lowest level since Aug. 20. About 4 million shares changed hands, or about eight times the three-month daily average. Rosneft rose 2.6 percent to 219.75 rubles in Moscow and climbed 2 percent to $7.06 in London.
BP will sell its 50 percent stake in Russia’s third-largest oil producer for $17.1 billion in cash and 12.8 percent of Rosneft’s shares, according to a statement today. BP will reinvest $4.8 billion in the government’s shares of Rosneft, leaving it with $12.3 billion in cash, 19.75 percent of the state-backed company and two board seats. Rosneft also has an agreement to buy the other half of TNK-BP from a group of billionaires for $28 billion in cash, Rosneft said in a separate statement.
“It’s unclear what role TNK-BP will play in Rosneft’s business, whether it will be dissolved, whether the minorities will receive a payout,” Alexei Kokin, an analyst at UralSib Capital, said by phone from Moscow. “Nobody expected that Rosneft would agree to buy out the entire company in one day, that doesn’t leave time for dividend discussions.”