Bashneft’s Board of Directors recommends postponing SPO

The Bashneft’s Board of Directors has been given information from the company’s management on the status of the preparation of the company of a possible secondary distribution (SPO) in autumn this year and recommended to postpone the implementation of the project because of unfavorable market conditions, the oil company reported.

In early July, Bashneft applied to the Russian Central Bank for permission for circulation of up to 45 million of its shares on the London Stock Exchange, the company reported. Bashneft also submit an application in the Central Bank for registration of additional issue of up to 37 million of its common shares.

The Bashneft’s Board of Directors made a decision on the additional issue and inclusion of the company's shares in the quotation list of the first level on the Moscow Stock Exchange during the preparation of SPO in London on July 4th. The Board also approved a deposit agreement with the bank Citi and underwriting agreement with Morgan Stanley, Barclays and Sberbank CIB. An extraordinary meeting of shareholders was scheduled for August 14th to approve these transactions