Mark Mobius finds formula for Igor Sechin – minority shareholders of RN-Holding to insist on increase of offer price

Minority shareholders of RN-Holding that don’t agree with in their opinion the low price of the offer, have proposed their own formula for the appraisal of the company’s shares to Rosneft. But the state-owned company, supported by the country’s leadership, isn’t going to increase the price. According to analysts, the minority shareholders estimate securities at 38% more than Rosneft proposed to do: ordinary share – at 90 rubles and preferred share at 65 rubles.

Several components must be included into basis for calculation of the price of the RN-Holding’s shares (previously BP-TNK Holding) during their purchase from the minority shareholders, the investment fund Templeton Emerging Markets Group’s CEO Mark Mobius stated to the ITAR-TASS. In the first place, the price must take into account the market price of the shares at the moment of the deal annunciation (it became known in September of 2012 and was concluded on March, 22nd), then amount of free funds, which BP-TNK had that moment, amount of dividends that were to be paid to shareholders, and, finally,the control premium, which would be able to justify the higher price for three controlling shareholders. Prosperity Capital (one of the minority shareholders of RN-Holding) called the formula of the share value, calculated by Mr.Mobius, “a reasonable approach”.