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. Last Updated: 07/27/2016

New Sibneft Share Issue To Consolidate Stock




Shareholders have approved raising capital in Russia's seventh biggest oil company, Sibneft, to 8.03 billion rubles ($1.35 million) from 7.23 billion rubles through a new share issue, Sibneft said Tuesday.


The increase is part of a previously agreed plan to consolidate shares in Sibneft and its operating subsidiaries into a single stock.


"By the decision of the meeting, 500 million new shares with a par value of 1.6 rubles each will be placed through a closed subscription by May 15, 1998," a company statement said.


The board would decide the date of the placement of new shares, as well as the price, method and form of payment, and other conditions.


Shareholders voted in September to increase authorized capital to 27.2 billion rubles from 7.2 billion rubles. The shares, to be issued at the discretion of management, were to be used for consolidating shares of Sibneft and its subsidiaries.


Shareholders also voted to give the board until Dec. 31, 1998, to decide whether to raise capital by revaluing assets and raising the nominal value of shares, Sibneft said.


"This decision is linked to the redenomination of the securities planned in 1998 and in no way infringes on the rights since the increase in charter capital to raise the nominal share price will be undertaken ... freely and in proportion to the number of shares shareholders have," the statement said.


Russia is planning to knock three zeros off the ruble from Jan. 1, 1998, which would give Sibneft shares a face value of 0.0016 redenominated rubles.


Sibneft's main production unit is Noyabrskneftegaz, and it also owns one of Russia's biggest refineries, Omsk Refinery. Other subsidiaries include the exploration company Noyabrskneftegazgeofizika, and the distributor Omsknefteprodukt. Sibneft shares were quoted on the Russian Trading System's second tier at $0.61/$0.70 Monday.


Sibneft, said to be controlled by businessman Boris Berezovsky, has formed an alliance with Yukos, Russia's biggest oil group by reserves, to bid for state oil holding company Rosneft when it is privatized.


Sibneft currently has charter capital of 7,226,234,000 rubles.