MOSCOW, February 5 (RIA Novosti) – British oil major BP will get $700 million less for selling its 50 percent stake in TNK-BP to state-owned Rosneft, in consideration of dividends paid to BP in December last year, BP’s fourth quarter and full year 2012 statement said on Tuesday.
BP signed a deal with Rosneft in November 2012 to sell its 50 percent stake in the TNK-BP joint venture for $17.1 bln in cash and 12.84 percent of Rosneft’s stock.
The parties agreed BP would use $4.8 billion of that cash to acquire a further 5.66 percent stake in Rosneft from the Russian government at a price of $8 per share.
After the transaction was completed, BP was expected to acquire a total 18.5 percent stake in Rosneft and net $12.3 billion in cash, with BP's holding rising to 19.75 percent of Rosneft stock, when aggregated with BP’s 1.25 percent current stake already held in the Russian oil giant.
BP’s report says, however, the British oil major was paid a $700 million dividend by TNK-BP, which reduced the cash consideration for the TNK-BP deal to $11.6 billion.
The deal to sell BP's TNK-BP state to Rosneft is expected to be closed in the first half of 2013.
Add to blog
You may place this material on your blog by copying the link.
One of the main achievements of the 6th BRICS Summit was the signing of an official document on establishing a New Development Bank with a declared capital of $100 billion. The creation of the bank is an important step towards institutionalizing BRICS and strengthening its positions in the world in the long run.