. Last Updated: 07/27/2016

Bid Deadline For Sidanko Stake Expires

The deadline for participants submitting bids for an investment tender for a 34 percent stake in Sidanko, one of Russia's largest oil companies, expired Wednesday, but it remained uncertain when the results would be made public.

"The bids will now have to be examined by the tender commission, and their decision is then published," said an official at the Russian Federal Property Fund, the government's executive agency for the sale of state property.

The official declined to say when the procedure would be completed.

A spokesman for Uneximbank, widely seen as the favorite to clinch the stake, said the result could be made public later this week. The spokesman would neither confirm nor deny that the bank had submitted its bid.

Under the terms of the tender, the investor must pay 110 billion rubles ($20 million) and make an initial investment of at least 325 billion rubles ($60 million) in the company.

The winner of the tender also has to hand over a 13 percent stake of Chernogorneft, Sidanko's main production unit, to Sidanko.

According to analysts, this provision is tailor-made to suit the financial group around Uneximbank, which already holds a stake of some 15 percent of Chernogorneft stock.

Uneximbank's sister institution MFK took a 51 percent stake in Sidanko at an auction under the government's loans-for-shares privatization program last December.

Following the expiry of a Sept. 1 deadline, the bank can now sell its holding, but has said it is seeking to receive the stake in long-term trust management from the state.