Alliance Group redeems Alliance Oil

The Alliance Group controlled by the Bazhaev family is going to consolidate Alliance Oil, having spent almost $1.2 billion on the redemption of more than 50% from the minority shareholders. Though the group disagrees the information about its intention to sell Alliance Oil, everyone in the market believes, the company will have the new owner. Eduard Khudainatov (Nezavisimaya Neftegazovaya Kompaniya - Independent Oil Company, NNK) is named the most probable candidate.

Yesterday Alliance Group holding 44.5% of ordinary and 7% of preference shares of Alliance Oil claimed, it was going to consolidate 100%. The offer to the shareholders will make up 60 SEK (9.4 USD) per ordinary and 313 SEK (49 USD) per preference share, as of October 30 the premium to the value of the shares will make up 4% at Stockholm Stock Exchange. The amount of the transaction can reach $1.2 billion; the funds will be borrowed from Gazprombank. After the redemption on December 11th it is planned to conduct delisting at Stockholm Stock Exchange. On October 3th0 Alliance Oil amounted to almost $1.9 billion.