Italian energy company Eni has won the second auction for Yukos assets. Bidding lasted 7 mins I bought the lot $5.8bn, just over the $5.6bn starting price There were three bidders. It took the 20% stake in Gazprom Neft (nee Sibneft) This not really a surprise as the Kremlin's policy is to bring in minority foreign strategic investors into all its major industries. The international press will be struggling to explain this as it has sold itself on the "creeping statism" and "re-nationalisation" lines, which this result doesn't fit with. The point to take out of this result is there is a valid role for foreign investors in Russia and they can get access to very attractive assets. Just they won't be allowed to control these assets. Given the news on e.on's failure to buy Endesa yesterday because the Spanish government was "unhappy about a foreign company owning a strategic asset" is it any different anywhere else?
This not really a surprise as the Kremlin's policy is to bring in minority foreign strategic investors into all its major industries. The international press will be struggling to explain this as it has sold itself on the "creeping statism" and "re-nationalisation" lines, which this result doesn't fit with. The point to take out of this result is there is a valid role for foreign investors in Russia and they can get access to very attractive assets. Just they won't be allowed to control these assets. Given the news on e.on's failure to buy Endesa yesterday because the Spanish government was "unhappy about a foreign company owning a strategic asset" is it any different anywhere else?
From Ben Aris [editor@businessneweurope.eu] In the long run, we're all dead. John Maynard Keynes
BTW, Gazprom has an option of buying out Eni's stake in Gazprom Neft', hasn't it?
Eni bid of $5.83bn wins Yukos gas assets Aton Eni, via its Enineftegaz affiliate, has won Arcticgas, Urengoil and the 20% stake of Gazpromneft shares by submitting the highest bid of $5.83bn at today's Yukos assets auction. There were 26 bids submitted, with Rosneft and Eni's aggressive bidding sidelining Novatek's representative early during the session. Gazprom announced earlier today that it had secured a call option to purchase the 20% Gazpromneft stake from Eni, thus giving the markets an indirect signal on the likely outcome of the proceedings. The option may be executed in one to three years; we see it as a positive development for Gazpromneft, which will now inherit a significant Western minority shareholder and may likely continue its independent business life. The outcome of the auction is a slight positive for Gazprom, which for now has managed to avoid overpaying for the stake in its subsidiary, and also indirectly strengthened its ties with the Italian energy concern, improving its business outlook on one of Europe's largest markets.
Aton
Eni, via its Enineftegaz affiliate, has won Arcticgas, Urengoil and the 20% stake of Gazpromneft shares by submitting the highest bid of $5.83bn at today's Yukos assets auction. There were 26 bids submitted, with Rosneft and Eni's aggressive bidding sidelining Novatek's representative early during the session.
Gazprom announced earlier today that it had secured a call option to purchase the 20% Gazpromneft stake from Eni, thus giving the markets an indirect signal on the likely outcome of the proceedings. The option may be executed in one to three years; we see it as a positive development for Gazpromneft, which will now inherit a significant Western minority shareholder and may likely continue its independent business life.
The outcome of the auction is a slight positive for Gazprom, which for now has managed to avoid overpaying for the stake in its subsidiary, and also indirectly strengthened its ties with the Italian energy concern, improving its business outlook on one of Europe's largest markets.
