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. Last Updated: 07/27/2016

LUKoil Drops Issue Plan




Russia's leading oil firm, LUKoil, does not plan to issue this year 20 million preference shares authorized by shareholders and intended to fund acquisitions, Vice President Leonid Fedun said Wednesday.


Fedun said LUKoil would launch Level Two or Level Three foreign trading American Depositary Receipts, or ADRs, next year and was studying a plan by which the government could sell shares from a 14.3 percent stake in the form of convertible bonds.


"It is most likely the 20 million [authorized] share issue will not be used this year," he said. The annual meeting this year authorized the shares and Fedun added they were intended to buy other companies.


He said LUKoil would issue ADRs next year. "In 1999, we are obliged to our shareholders to do it. We plan a Level Three, but a change to a Level Two is possible."


LUKoil would publish next year international standards accounts, which he said had been delayed as accountants adjusted for company acquisitions.


Fedun said that the company was close to tying up a syndicated loan for $500 million to $1.5 billion, depending on market conditions, which would take precedence over a separate $250 million loan LUKoil has mandated BT Alex Brown to study, not lead, in connection with purchasing a Romanian refinery.


He also said LUKoil was considering ways to sell two government-owned stakes totaling 14.3 percent of the company "I don't know whether the shares will be sold or not. That is a question for the State Property Fund. ... We will not be a buyer."