Bashneft’s shareholders approved selling the Company’s stake in UPC

Shareholders of Bashneft at the extraordinary meeting approved a transaction on selling shares of OJSC United Petrochemical Company to OJSC JSFC Sistema, Bashneft reports.

10 354 680 ordinary shares of UPC are subject to sale that make 98% stake in the authorized share capital of the company. The minimum transaction price is 6.2 billion roubles.

The decision on termination of Bashneft participating in the UPC authorized capital was accepted by the Board of Directors of the oil company on July 17. It was justified by the strategy for divesting non-core assets beyond Bashneft company limits.

In January, current year Bashneft has received a permission from the Federal Antimonopoly Service to make its stake in UPC as 100 percent and in February became its sole owner. The process of consolidation of Bashneft’s petrochemical assets on the basis of UPC was started, which was finished in June. Under the terms of consolidation UPC purchased at Bashneft 100 percent of shares in the LLC «Tuimazinsky Gas-Refinery Plant», LLC «Shkapovsky Gas-Refinery Plant» and created LLC "Bisphenol". Also UPC became the owner of 56,5 % stake in the authorised capital of JSC Ufaorgsintez.

Shareholders approved also the contract for selling up to 1.1 million tons of Bashneft’s petrochemicals to OJSC Ufaorgsintez, which forms part of UPC, before December 31, 2014. The transaction price is 14.15 billion roubles.