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. Last Updated: 07/27/2016

Rosneft to Consolidate Subsidiaries After IPO

Oil firm Rosneft plans to issue shares in an initial public offering before consolidating its majority-owned subsidiaries, Interfax quoted the head of the Federal Property Management Agency as saying on Tuesday.

"It's planned to place a new issue of Rosneft shares before carrying out the consolidation," agency head Valery Nazarov said in comments that Interfax said referred to the company's planned IPO.

That would reverse the expected sequence of events, since Rosneft previously said that it would consolidate shares in subsidiaries in the first half of the year and then conduct its $20 billion IPO in the second six months of 2006.

Nazarov added that the firm had still not made a final decision about consolidating its subsidiaries, which include Purneftegaz, the Komsomolsk refinery and Sakhalinmorneftegaz.

Although proceeding with the planned share offering without consolidating first somewhat undermined the Rosneft investment case, brokerage Aton said, it was unlikely to deter investors from gaining exposure to Russia's fastest-growing oil company.