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. Last Updated: 07/27/2016

State Revives LUKoil Stake Sale

LONDON -- The government said Monday it would try again to sell a 5.9 percent stake in No. 1 oil company LUKoil after the collapse of a sale in August, which they said undervalued the company.

The State Property Fund said in a press release issued in London that it would offer 50 million ordinary shares of LUKoil through an offering of 12.5 million American Depositary Shares by lead manager Morgan Stanley, the same amount as offered in August.

No details on the timing of the deal were released, but rumors have been circulating in the Russian market of a deal before the end of the year.

LUKoil shares have risen from $14 at the time of the cancelled offer to $16.24 at the close of trade Monday, so any sale at today's prices would raise $812 million, well above the $600 million base target the Russians had in August.

LUKoil itself has tapped capital markets recently, with a $350 million convertible bond offering that went well.

Having been substantially oversubscribed at the time of the withdrawn offering in August, there is evidence of strong appetite among international fund managers to own LUKoil, which is an open and transparent company by Russian standards.