The Skagen Fund warns its clients about possible deal between Rosneft and Surgutnefetgaz

The Norwegian Investment Fund Skagen, which manages a portfolio of assets worth $20 billion, doesn’t rule out a transaction between Rosneft and Surgutneftegaz. This scenario was described by Skagen managers for its customers in the Skagen Global’s report, which have the securities of Surgutneftegaz.

Justifying its investments in the company (doubled to nearly 1% of the portfolio in 2013), Skagen recalls that about $ 33 billion are accumulated at the Surgutneftegaz’s accounts - the cheapest oil company in the world on EV. "It provides a negative EVcoefficient. The shares give a 10% dividend yield and after launch of Euroclear in Russia are available for investors. They (Surgutneftegaz) can spend money for a new large oil deposit or conclude a transaction with Rosneft. Both scenarios would be received positively,"- Skagen reports.