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Yukos, Sibneft complete merger, creating world’s 4th largest oil producer
Mara D. Bellaby Associated Press Writer
Russian oil giant Yukos announced the completion Oct. 3 of its merger with smaller rival Sibneft, creating the world’s fourth-largest oil producer.
The newly formed YukosSibneft becomes Russia’s largest oil and gas group with a market capitalization estimated at some US$36 billion.
The merger, the largest in Russian corporate history, was carried out in less than six months, a speedy completion considering the raft of approvals needed from many of Russia’s authorities.
On Oct. 2, Yukos paid the final US$1.25 billion for 20 percent of Sibneft shares minus one, Yukos said in a statement. The total cash paid for all the Sibneft shares was US$ 3 billion. Yukos took control over another 72 percent of Sibneft shares plus one on Oct. 3 in exchange for both new and previously issued Yukos shares, the company said.
The newly formed company will hold an extraordinary shareholders meeting on Nov. 28 to consider amendments to Yukos’ corporate charter, including the official name change, as well as to elect a new board of directors.
“In the near future we will begin the process of making YukosSibneft a truly major player in the international energy market,” said Mikhail Khodorkovsky, head of Yukos. He is expected to be the CEO of the new company.
Eugene Shvidler, Sibneft’s president who is expected to become the merged company’s chairman, said the speed with which the merger was completed “shows how well these two companies fit together.” Criminal probe of Yukos continues Meanwhile, Russian prosecutors kept up the pressure on Yukos, again widening their criminal probe into the oil giant on Oct. 3. Investigators were carrying out simultaneous searches of a Yukos business club in Zhukovka and a Yukos-funded orphanage in Zvenigorod, both located outside Moscow.
The Interfax news agency, citing a source in the General Prosecutor’s Office, said that both searches were linked to the ongoing probe into activities by Platon Lebedev, one of Yukos’ top shareholders.
Lebedev has been jailed since his July 2 arrest on suspicion of defrauding the state in a 1994 privatization deal and tax evasion. The probe has included an archive search and investigations into what prosecutors say are the killings and attempted killings of officials and businessmen who had conflicts with Yukos.
The Yukos probe is widely seen in Russia as a politically motivated campaign against the powerful oil giant and its billionaire leader, Khodorkovsky. Observers have said it appears to be a warning to Khodorkovsky to stay out of politics.
The investigations have made Russian and foreign investors nervous and stoked fears that controversial privatization deals of the 1990s could be annulled, a move that Russian President Vladimir Putin has ruled out.
Also Oct. 3, Khodorkovsky was quoted by the ITAR-Tass news agency as denying reports that Yukos was planning to sell a large stake to ExxonMobil. “There have been no talks or deals with the Americans on that score,” Khodorkovsky was quoted as saying.
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